In the last quarter of the fiscal year, the Walt Disney Company reported subscriber losses on Disney+, as the subscriber count is now 146.1 million, which is a 7.4% decline from the previous count. The company announced that it had mixed results in the quarter. Apart from that, the platform also faced various streaming problems, as well as restructuring costs so as to pull content from the platform.
The company faced a 7.4% decline as compared to the last quarter, and the loss is larger than what experts at Wall Street expected. Most of the losses in subscriber count came from Disney+ Hotstar, where the company faced a 24% drop in user count. This is due to the fact that the company lost its rights to stream Indian Premier League cricket matches on the platform.
According to reports from CNBC.com,
“Facing dwindling users and falling revenue in its media and entertainment distribution segment, Disney announced Wednesday it would raise the price on its ad-free streaming tier in October and that it would crack down on password sharing, as streaming rival Netflix did earlier this year.”
After Disney posted its updates on streaming on Wednesday, the prices of shares increased by 4%. The CEO of Disney, Bob Iger, remains optimistic as he states that the business will drive its greatest growth in the next five years.
The company faced a quarterly net loss, as it recorded $2.65 billion in one-time charges and other impairments. These charges were provided for pulling certain content off from its streaming platforms, as well as ending third-party licensing agreements.
Disney’s net loss was $460 million or 25 cents per share. However, the revenue increased to $22.33 billion (4%), which is still short of the estimates of Wall Street experts.
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