Disney+ has bled four million subscribers over the last three months, the first time the streaming services has gone backwards since launching.
The company’s first quarter financials sent shares falling by as much as 4.4 per cent, as its direct-to-consumer segment, which includes streaming, posted a A$972.83 million loss for the three months.
Disney’s traditional television networks, including ESPN, fell from A$4.1 billion to $2.66 billion year-on-year, a significant fall.
Overall, the Disney company delivered solid results, with revenue up 13% from a year earlier to A$32.1 billion. Net profit nearly tripled to A$1.87 billion from A$694 million a year earlier, due mostly to the reopening of all its theme parks.
Price increases in the US and Canada have hit subscriber numbers, with the streamer shedding 300,000 in those markets, and 4 million worldwide.
Hotstar, the Indian version of Disney+, saw its subscriber count fall to 52.9 million from 57.5 million, due to losing the IPL cricket rights – a big reason for a lot of subscriptions in this region.
While this marks a subscriber figure hit, it will make the company’s ARPU more attractive, given the average Indian subscription is worth just 87 cents AUD a month.
During an earnings call, CEO Bob Iger said the company will add the Hulu content into the Disney+ platform.
“We will soon begin offering a one-app experience domestically that incorporates our Hulu content via Disney+,” Iger said.
“We also think that it will benefit consumption in general, lower churn, be more attractive.
“It’s just an all-in-one. It’s a bigger platform.”
