In the last quarter of 2023, Disney+ witnessed a decrease of 1.3 million subscribers following a significant price hike introduced in the fall.
Despite this decline, the streaming platform successfully reduced its streaming business losses by $300 million from October to December.
The core subscriber base, including U.S., Canada, and international users (excluding Disney+ Hotstar in India), saw a decrease from 112.6 million to 111.3 million.
Disney reported earnings with revenue remaining largely unchanged at $23.5 billion, falling short of the $23.8 billion average estimate. Challenges in Disney’s TV business and underperformance of two theatrical releases, “The Marvels” and “Wish,” were cited as contributing factors.
Despite revenue challenges, Disney anticipates a profit increase of at least 20% for the year, reaching around $4.60 per share, surpassing the estimated $4.27 per share.
However, overall streaming losses, including Hulu and ESPN+, decreased to $216 million from $1.05 billion a year ago. Disney aims to add up to 6 million core Disney+ subscribers in the current period, targeting profitability for its streaming operation by the fourth quarter of the fiscal year.
Disney+ also announced new restrictions on password sharing in its updated Terms of Service, with a focus on U.S. users. The revised Service Agreement defines a household as the devices associated with the subscriber’s primary personal residence.
Users were informed that limitations on account sharing outside the subscriber’s household would be implemented, with the service analyzing account usage for compliance.
This policy is effective for new subscribers in the United States and Canada and extends to Hulu, another streaming service owned by The Walt Disney Company. Existing members will experience these changes by March 14.
