Disney’s Streaming Subscriptions Fell 2% Last Quarter, Missing Projections
For the second straight quarter, Disney+ saw a substantial decline in subscribers.
Ahead of their Q2 earnings call, Disney revealed that it had lost nearly 4 million subscribers to Disney+.
While Wall Street had expected Disney+ subscriptions to grow less than a percent during the quarter, possibly reaching 163.17 million users, the service instead saw a 2% drop to 157.8 million subscribers.
Struggling Internationally
Interestingly, the majority of those losses came from an 8% drop in Dinsey+ Hotstar membership, while only 600,000 subscribers were lost domestically.
While Disney had expected to lose some streaming subscriptions due to the recent price increases, the numbers were still a disappointment.
Beating Operating Income Losses
Despite Disney’s overall subscriber loss, the company’s direct-to-consumer operating income losses were narrower than expected. Overall the division lost $659 million during the last quarter, compared to a loss of $841 million projected b Wall Street.
Additionally, revenue for the unit rose by 125 to $5.51 billion, reflecting the service’s recent price increases.
Disney also noted that the lower operating loss was due to improved results at Disney+ and ESPN+.
Revenue Per User Up Domestically
Finally, the company saw higher subscription revenue at Disney+, where the average revenue per user rose 205 to $7.14 domestically.
Globally, Disney+ Hotstar lowered the international number to $4.44, which was lower than the $4.52 projections.
Despite the lackluster subscription numbers, Disney managed to beat Wall Street projections for its overall earnings. This is a good sign that Bob Iger’s plan to revitalize the company is on the right track.
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