Disney+ Subscribers Decline as Streaming Services Continue to Lose Money

The entertainment giant is losing subscribers to Disney+ and continues to lose money on the streaming services.

Foto: ALY SONG / Reuters / NTBPublisert:

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Disney presented its figures from the previous quarter on Tuesday evening.

CEO Bob Iger’s main goal is to make the streaming service Disney+ profitable by 2024. But the accounts show that the company still has a way to go.

Disney lost $500 million on the operation of its streaming services. Revenues came in at $22.3 billion, just below what analysts expected beforehand.

Disney+ now has 146.1 million subscribers. That is 11.7 million fewer than at the same time last year.

In advance, it was expected that Disney would present subscription figures for Disney+ of over 151 million.

The decline comes according to CNBC as a result of Disney+ Hotstar losing the rights to show Indian Premier League. Disney+ Hotstar lost 24 percent of its subscribers in the wake of the rights loss.

However, the company was able to present a profit of 1.03 dollars per share. The share immediately fell 2 percent in after-market trading, but shortly after 11 p.m. Norwegian time, the share turned up 6 percent.

In advance, it was expected that the only real positive Disney could present were the numbers for the theme parks.

The report shows an increase of 13 per cent. This corresponds to 8.3 billion dollars, which exceeds expectations.

Affected by strike

Disney has lately, like the rest of Hollywood, been affected by the strike among both actors and screenwriters. Iger has stated that he believes the demands made by the other party are unrealistic.

– It is very disturbing for me. This is the worst timing ever to come up with this disruption, says Iger to Variety, at the same time emphasizing that the aftermath of covid has not completely let go of the industry.

IN HARD WEATHER: Disney’s CEO, Bob Iger, does not have the best reputation among Hollywood screenwriters after the statements he has made in connection with the strike. Photo: NICHOLAS KAMM / AFP / NTB

– I understand that member organisations’ desire to get the most for their clients, but we – as an industry – have negotiated a fair and good agreement that reflects the work being done. We would do the same with the screenwriters, but their expectations are simply unrealistic, he asserts.

Disney does not mention the strike with a single word in its quarterly report.

Photo: VALERIE MACON / AFP / NTB

Must implement major cuts

Disney has previously announced that they aim to carry out a huge restructuring of the company, where they have announced, among other things, that they will cut costs by 5.5 billion dollars a year.

Built into this cut, there will be up to 7,000 jobs. There is also talk of a number of other restructurings, such as how they will continue to operate the sports channel ESPN. According to CNBC, Disney is working to buy out Comcast, the other owners of Hulu, and take full control of the streaming service.

According to the channel, negotiations are expected to start as high as 9 billion dollars.

2023-08-09 20:18:34
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