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As was the case with the subscriber loss at the end of 2022, the dip in subscribers in that specific region comes down to a major loss in local programming. Specifically, Disney+ Hotstar lost streaming rights to cricket matches. Disney previously lost out on securing the Indian Premier League rights when they came back up, resulting in users that subscribers just to watch live sports have cancelled their membership.
When you look at the Disney+ subscribers in every other region, there are modest gains and minimal loses. In the United States, Disney+ lost just 300k paid subscribers, down just 1%. Internationally (in non-Disney+ Hotstar regions) the streaming service added 900k new subscribers, a 2% increase.
“We’re pleased with our accomplishments this quarter, including the improved financial performance of our streaming business, which reflect the strategic changes we’ve been making throughout the company to realign Disney for sustained growth and success,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. “From movies to television, to sports, news, and our theme parks, we continue to deliver for consumers, while establishing a more efficient, coordinated, and streamlined approach to our operations.”
In their letter to investors, The Walt Disney Company elaborated that improvements to Disney+ were “due to higher subscription revenue and a decrease in marketing costs, partially offset by higher programming and production costs and, to a lesser extent, increased technology costs. Higher subscription revenue was attributable to subscriber growth and increases in retail pricing, partially offset by an unfavorable foreign exchange impact. The increase in programming and production costs was due to more content provided on the service.”
The potential for even more subscriber loses however lingers, especially after Disney confirmed that they will begin an audit of their streaming content and remove titles from their services (not unlike HBO Max previously did).
