Disney tops quarterly profit estimates but starts to lose Disney+ streaming subscribers
Disney posted fiscal first-quarter earnings Wednesday that beat on the top and bottom lines, but revealed the beginnings of expected streaming subscriber losses at Disney+.
Disney posted fiscal first-quarter earnings Wednesday that beat on the top and bottom lines, but revealed the beginnings of expected streaming subscriber losses at Disney+.
The company’s streaming business reported another quarter of profitability despite a 1% decline in subscribers for Disney+, the company’s flagship service. While domestic subscriptions for the platform increased around 1%, international numbers declined around 2%.
Disney warned during its fiscal fourth-quarter report in November that it expected a “modest decline” in subscriptions during the December period. Disney told investors Wednesday that it expects another “modest decline” in subscribers during the second quarter.
Total paid Disney+ subscriptions stand at 124.6 million, compared to 125.3 million at the end of the company’s fiscal fourth quarter. Total Hulu subscriptions rose 3% during the period to 53.6 million.
The slowdown in streaming subscriber growth follows an increase in prices for its services last year. Disney+’s average monthly revenue per paid subscriber increased roughly 4% to $7.99 due to those price hikes, the company said.
Rating: 5