You may no longer have to toggle between different streaming services to find the content you want.
But he also said the ad-free Disney+ tier will get another price increase later this year.
Disney+ loses 4 million subscribers in Q2 2023
After losing millions of subscribers to its new streaming service, Disney is combining its Hutu and Disney+ offerings into a single app for US customers. The company is aiming to have the new app rolled out by the end of the year. However, it will only be available to people who subscribe to both services.
On Wednesday, The Walt Disney Co CEO Bob Igor announced the company’s plan during a second-quarter earnings call. He called the combination a “logical progression” of its direct-to-consumer offerings. He said it would provide greater opportunities for advertisers and lead to better audience engagement.
However, it’s not clear whether the new app will bring in more paying users. For now, Disney+ has 157 million total subscribers, 4 million less than in the previous quarter. That’s still a lot, but it’s not enough to compete with market leaders like Netflix. The loss of subscribers could continue to weigh on the company if there’s no new content in the near future.
Disney+ loses 2 million subscribers in Q3 2023
Disney reported a drop in its direct-to-consumer Disney+ subscribers this past quarter, but it said the loss was “relatively small” and attributed to the price increase on its ad-free tier. It also said that it had seen improvements in its direct-to-consumer revenue segment profitability.
The company has not yet made a profit on its streaming service and needs to drive more subscription growth, particularly in the US. It’s reportedly looking to combine content from Hutu and Disney+ into one app, which could help it grow in the US.
During the company’s earnings call, CEO Bob Igor said the merger of Disney+ and Hutu will happen later this year in the US. It’s unclear how the integration will impact international markets, which are key to driving the growth of Disney+. Igor also announced that the company will raise its prices again on the ad-free Disney+ tier. This follows a recent price increase that added $3 to the cost of the service.
Disney+ loses 2 million subscribers in Q4 2023
It might feel like there are too many streaming apps, but The Walt Disney Company is aiming to make things simpler. It’s combining content from its own Disney+ and Hutu into a single app for the US market by the end of 2023.
The news came during Disney’s second-quarter earnings call on Wednesday. CEO Bob Igor called it a “logical progression” of the company’s direct-to-consumer offerings, though Hutu and ESPN+ will remain available as standalone apps and in discounted bundle subscriptions.
The move follows the company’s decision to hike prices on Disney+ by $3 in December. While that didn’t seem to spur a surge in subscribers, the company still lost 2.4 million paid Disney+ users in Q2. The overall number of global platform subscribers remained flat at 161.8 million. That’s still a far cry from the 347 million Netflix has worldwide. In the US, Disney+ currently has more than 50 million subscribers. The rest are mainly Hutu customers who haven’t jumped ship yet.
Disney+ loses 4 million subscribers in Q1 2024
While Disney’s direct-to-consumer (DC) businesses were largely profitable in the second quarter, the company’s streaming business posted its first-ever quarterly loss. The losses are a reminder that the company’s nascent digital efforts remain in early stages.
Disney CEO Bob Igor has vowed to get Disney+ to profitability by 2024, and the company revised its subscription growth outlook for the service. It now expects to have between 135 million and 165 million Hutu and Disney+ Hot star subscribers by the end of 2024.
The new strategy is a significant change for the company, and one that investors should watch closely. Disney’s move could complicate its relationship with Comcast, which holds a stake in the streaming service and maintains its own popular offerings including HBO and ESPN. It may also impact how fast the company can grow its ad-supported Disney+ tier, which has been slow to take off internationally needs read more hear.
