As it prepares for its third round of layoffs and battles with production delays caused by the ongoing writers strike, Disney handed more bad news to investors. Disney+, the company’s flagship streaming service, lost four million customers in the second quarter of 2023, bringing the total to 157.8 million subscribers, up from 161.8 million in the previous quarter. Analysts predicted a 163.17 million increase in subscribers.
The primary cause of the drop was Disney+ Hotstar, which lost 8% of its subscriber base, falling from 57.5 million in Q1 2023 to 52.9 million. Many Indian consumers are outraged by the company’s decision not to maintain streaming rights for the Indian Premier Cricket League.
Disney+ saw its first subscription decrease since its launch in 2019. In the first quarter, the streamer lost 2.4 million users.
During the most recent earnings call, CEO Bob Iger also stated that Disney is planning massive restructuring, including job losses affecting 7,000 employees. So far, the company has experienced two waves of layoffs, with a third on the way.
Disney’s ambitions to cut $5.5 billion in costs, including $3 billion in content spending, were previously disclosed by Iger. Disney has stated that the Marvel and Star Wars properties will take precedence over other releases.
However, production on Marvel’s “Blade” and Star Wars’ “Andor” was recently halted due to the Writers Guild of America (WGA) strike, which began last week after the group failed to reach a satisfactory agreement with the Alliance of Motion Picture and Television Producers.
The writers are right to demand more pay and more equitable streaming residuals. Jobs for writers are less constant in the streaming era because shows often have fewer seasons than those on television.
If less content is released on Disney+ as a result of the strike, more viewers are likely to abandon their memberships.
Despite the flaws, the corporation emphasized its increased financial success in the streaming sector. Losses were $659 million for the period, down from $1.1 billion the previous quarter. The division’s revenue increased as well, reaching to $5.5 billion.
Meanwhile, Hulu increased its subscriber base by 200,000, bringing its total to 43.7 million, up from 43.5 million in the previous quarter. ESPN+ also saw an increase in subscribers, reaching 25.3 million thanks to a 400,000-subscriber rise.
