The streaming service had an encouraging quarter, but there’s still a lot of work to be done to turn a profit.
As the coronavirus pandemic ended, the incredible momentum of streaming service providers was also broken, and news emerged of an exodus of subscribers who had regained their freedom of movement and huge losses. Similar to Netflix, Disney+ has shifted into crisis management mode, trying to stabilize the platform’s financial position through measures such as banning password sharing and launching an ad-supported package as well as cutting costs.
How successful the firefighting has been so far can be inferred from the fourth quarter (Q4) earnings report that Disney recently shared, which could provide investors with encouraging numbers.
From July-August-September, Disney+ increased its base by 3.3 million subscribers, meaning 150 million people are already using the service. Of these, 112.6 million are subscribers to Disney+ itself, and 37.6 million are Disney+ Hotstar customers in India. And the last in the third quarter Lost over 12.5 million subscribersAfter Disney lost the broadcast rights to the local cricket league.
But more importantly, while Disney’s streaming platform posted a huge loss of $1.4 billion in the fourth quarter of 2022, the loss was only $387 million in the fourth quarter of this year. This is still a loss, of course, but the 74% decline suggests that spending cuts are having an impact.
The report also reveals that in Q4 2023, the Pixar animated film Elementary, along with Guardians of the Galaxy: Part 3 and the live-action adaptation of The Little Mermaid, were the service’s most watched productions. The CEO has been called upon to lead Disney Bob Iger also touched on thisTo complete The recently announced acquisition of Huluunder which a new unified application will soon begin testing in the United States, where subscribers can enjoy the two services in one place.
The big question is how the expected $8.61 billion deal will impact Hungarian customers, where we didn’t have Hulu before, but can access the platform’s shows under the “Star” badge integrated into the Disney+ app.