The company Disney has released its latest results and they are not good at all, it must be said. He streaming service continues to decline, and one thing is especially clear about it: has lost 4 million subscribers in the first quarter of 2023. So this company is on the same path as Netflix, although it seems for quite different reasons.
The main cause of this drop is the loss of cricket rights in India, it is true, but it also includes that the North American market has become difficult, which has had the consequence that its number of subscribers has dropped by 300,000 there. The fact is that the platform reaches 231.1 million users. subscribers on all of its streaming services this first quarter (but this number includes HULU and ESPN+). If these services are excluded, the figure would be significantly up to 158 million.
It is important to mention that this is not the first quarter in which Disney + has lost subscribers. Is he second quarter in a row in which this happens, since in the previous one the number fell by 2.4 million subscribers.
Disney + takes the initiative and there will be changes
Due to what we have discussed, the company has decided to take drastic measures to recover lost ground as soon as possible. The plan is reduce investment in own products -and by extension the content of the streaming platform–. We will have to see how this affects their licenses and how users are taken this November. But if it’s less quantity, but of higher quality… I’m sure things are going well.
The fact is that the CFO of the company, Christine McCarthy, has indicated that “we will remove certain content from our streaming platforms and we expect to make an impairment charge of between 1,500 and 1,800 million dollars.” A very important number.
Other measures that the firm will execute
They have announced a wave of layoffs expected to affect about 7,000 employees total. And, for now, the titles that will leave the streaming platform have not been confirmed, but it is believed that they will focus on productions that have not had numbers commensurate with the investment made. Therefore, some creations are in danger like Kenobi (if there was any possibility of a second season) and also others like Andor or Loki. In any case, it seems that the commitment to Marvel and Star Wars content will continue to be important.
To date there is no official confirmation of a price increase, something that is not ruled out at all (yes, it will be especially dangerous due to the trend of losing subscribers). maybe a fusion of contents with those of HULU and ESPN+ something that everything indicates will happen shortly, can get this to be assumed by those who have accounts on the platform.
But, on the contrary, it does seem that the option of registering service with ads it will be something that will inevitably reach every corner where Disney+ is present.