It is one of the news of the moment and with good reason. Disney + has experienced a significant loss of 700.000 subscribers during the last quarter of 2024, which corresponds to the first fiscal quarter of 2025 for the company. This fall, however, has not come as a great surprise to the company either. The Walt Disney Company, as the firm had anticipated the impact of recent decisions such as the increase in prices for its subscription plans and the end of certain special promotions. Even so, it is still an important figure, which invites us to reflect on the direction that these services are taking and their repeated cost increases.
Why have so many people left?
Among the main reasons for the decrease in subscribers, as we pointed out, the price increase applied in the fall of 2024 and the end of promotions that had attracted many customers in the past. Both the monthly fee for ad-supported and ad-free plans went up, in addition to measures to limit password sharing, a policy that, although controversial, appears to have been a strategic move to prioritize profitability over user growth.
Currently, the platform has 124,6 million of global users, excluding those of Disney + Hotstar, its economic version focused on the Indian market. If we go to the previous quarter, the one between June and September of 2024, Disney+ had managed to add 4,4 million of new subscribers, which is a lot to say, which further highlights how these measures have influenced the departure of users.
Solid financial results (despite everything)
Financially, the results exceeded expectations. Despite this significant decline in subscriber numbers, Disney's streaming division continues to show positive financial performance, recording its third consecutive quarter of profitability. Hulu, another of the streaming platforms under the Disney umbrella, managed to offset the losses by adding 1,6 million of new subscribers, reaching a total base of 53,6 million of users. However, not all areas of the business escaped difficulties. ESPN +, the company's sports service, also reported a loss of 700.000 subscribers in the same period.
In the film industry, the success of films like Moana 2, which exceeded the 1.000 million dollars at the box office, has been vital to boosting the company's profits. In contrast, titles like Mufasa: The Lion King, although also profitable, fell short of expectations in grossing 650 million of dollars.
All of this, together, has also led to exceeding expectations in Wall Street. Revenue was expected to reach 24,55 billion of dollars with an adjusted profit per share of 1,43 dollars. However, Disney managed to present an income of 24,7 billion dollars and an adjusted profit per share of 1,76 dollars, thanks in large part to the positive impact of price adjustments and the performance of other business divisions.
Content remains a fundamental pillar
Disney maintains its global dominance in total television usage among media companies, according to data from Nielsen, with YouTube as its main competitor. Among the most popular content on Disney+ and Hulu are shows like Bluey, Grey's Anatomy and the programming of Animation Domination de FoxAlso, during the Christmas season, classic titles such as Home alone y The Return of the Witches managed to capture the attention of viewers.
Another notable content was the streaming premiere of Deadpool & Wolverine, which became a huge success after its release in NovemberOn the other hand, box office performance has also been notable, consolidating the company's income.
In a recent statement, its CEO, Bob Iger, highlighted Disney's creative and financial strength, assuring that the strategic initiatives implemented over the past two years are bearing fruit. According to Iger, the company remains committed to long-term growth, confident in its current strategy to adapt to constantly changing market dynamics. This means that although the loss of subscribers may be a warning sign, Disney is convinced that it has taken the right path and that it has the ability to balance these setbacks with solid financial results. We will see how the next quarterly figures turn out and if they really continue to hold their own in the competitive world of streaming.