Disney+ loses 700,000 subscribers in three months, marking its first decline, as price hikes hit users' wallets
Disney's financial report revealed that the number of subscribers to Disney+, Disney's video streaming service, decreased by 700,000 between October and December 2024. Disney raised the subscription fee for Disney+ in October 2024, which has been pointed out as causing subscriber loss.
The Walt Disney Company Reports First Quarter Earnings for Fiscal 2025 - The Walt Disney Company
Disney+ Loses 700,000 Subscribers Following Price Increase - MacRumors
https://www.macrumors.com/2025/02/05/disney-plus-subscriber-decrease/
On February 5, 2025, Disney released its financial results for the first quarter of 2025, which ended December 28, 2024, announcing that sales for the quarter increased 5% to $24.7 billion (approximately 3.7 trillion yen) from $23.5 billion (approximately 3.5 trillion yen) in the same period last year.
The entertainment division performed well, with operating profit increasing by $800 million to $1.7 billion, but Disney+ subscriber numbers were down 1% to 124.6 million, a loss of 700,000 subscribers during the quarter.
Sports channel ESPN also lost 700,000 paying subscribers, but Hulu's subscriber base increased by 1.6 million to 53.6 million, helping the streaming business as a whole to maintain a profit for the third consecutive quarter.
Regarding Disney+ revenue, Disney said, 'International Disney+ average monthly revenue per paid subscriber increased from $6.78 to $7.19 due to higher prices and increased advertising revenue, partially offset by an increased share of subscribers taking advantage of discount promotional plans.'
Disney is raising the prices of its streaming services across the board in October 2024, with the ad-supported Disney+ plan increasing by $2 to $9.99, and the ad-free plan also increasing by $2 to $15.99. Hulu and ESPN+ prices are also increasing by $1 to $2 at the same time.
Disney has previously projected that Disney+ subscriber numbers would begin to decline in the first quarter of 2025, with modest declines expected in the second quarter and for the full year. CEO Bob Iger commented during a conference call explaining the company's earnings report that 'subscriber churn has not been as negative as we anticipated.'
In addition, the theme park business has been hit by a decrease in attendance due to abnormal weather, but as mentioned above, Disney's overall revenue increased by 5% due to the box office revenue of more than $1 billion (about 150 billion yen) from 'Moana 2,' which was released in November 2024.
Disney+ digital gift cards can be purchased from the following link.
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