Disney reveals that it’s streaming service, Disney-plus, has lost another four (4) million subscribers.
Disney Loses Over Four Million Subscribers
Disney has gone public with the fact of yet another huge loss, of over four (4) million, to its subscriber-count. Shares in the Florida-based Company, were under selling pressure as investors are concerned about the unexpected downward trend.
However, the good news is that Disney-plus is losing less money than it was, evident in the first set of quarterly results from the Company since veteran boss Robert Iger returned to lead it. The Head of the world renowned entertainment franchise is taking steps to slash spending costs by some 5.5 billion dollars this year and he trusts that such measures should balance the books before the fourth-quarter.
According to sources in New York, current losses in Disney’s streaming business totaled 659 million dollars which is an improvement from a year earlier. This progress has been largely down to price increases introduced last December. Since his return as the Company’s Chief-Executive, Robert Iger has made restoring profitability in the online-video offering a top-priority. During a call with investors, Mr. Iger said he was on the right path to securing profitability even with the writers’ strike that is currently going on.
Now, when it launched in 2019, Disney-plus enjoyed explosive growth but the costs also ballooned. By spending less on bring in new customers, Disney is making more money off each one, but its subscriber numbers have fallen. The service has roughly 158 million subscribers around the world, down two percent (2%) from December with most of that loss coming from ultra-low price subscriptions in India.
Nevertheless, while all streamers face the challenge of how to make money, Disney does have one big advantage which is its theme-parks which continue to thrive exponentially. Profits at the Company’s ‘Parks, experience and products’ division climbed twenty-two percent (22%).