Disney+ Loses 1.3 Million Subscribers After Price Hike

Disney+ has seen a decline in its subscriber base by 1.3 million following a price increase implemented in the final quarter of 2023 while being able to mitigate losses by a noteworthy $300 million.

During the Q1 FY24 Earnings Call, Disney revealed that Disney+ witnessed a drop from 112.6 million subscribers on September 30, 2023, to 111.3 million by December 30, 2023.

This is in stark contrast to competitor Hulu, which gained some 1.2 million subscribers during the same period, soaring from 43.9 million to 45.1 million.

Despite the recent drop in subscribers, Disney anticipates a net addition of between 5.5 and 6 million Disney+ Core subscribers in Q2 2024, despite the recent decline. Addressing the price adjustment, Disney+ raised its ad-free plan from $10.99/month to $13.99/month on October 12, 2023.

However, the with-ads tier has remained unchanged at $7.99/month, with an additional ad-free Hulu plan available at $19.99/month.

Robert A. Iger, Chief Executive Officer of The Walt Disney Company, expressed confidence in the company’s future trajectory.

“Just one year ago, we outlined an ambitious plan to return The Walt Disney Company to a period of sustained growth and shareholder value creation,” Iger said.

He added the company’s strong performance in various sectors, including fortifying ESPN, building streaming into a profitable growth business, reviving film studios, and enhancing growth in parks and experiences.

The entertainment giant also announced significant developments for its fans, including a $1.5 billion investment in Epic Games to expand the universe within Fortnite, a surprise sequel to Moana slated for November, and the confirmation of a second season for Percy Jackson and the Olympians on Disney+. Additionally, Taylor Swift’s The Eras Tour is set to stream exclusively on Disney+ in March. (GFB)