Disney+ loses 4 million subscribers as another round of layoffs approaches
Entertainment giant The Walt Disney Company’s flagship streaming service, Disney+, lost four million subscribers in the second quarter that ended April 1 as the company neared its third round of layoffs.
In the second quarter of 2023, the company reported 157.8 million subscribers, compared to 161.8 million in the previous quarter.
The main reason for the decline was Disney+Hotstar, which lost 8 percent of its subscriber base – from 57.5 million in the first quarter of 2023 to 52.9 million in the second quarter.
“Disney+Hotstar average monthly revenue per paid subscriber decreased from $0.74 to $0.59 due to a decrease in advertising revenue per subscriber,” the company said in a statement.
The decline in Indian subscribers is mainly due to the platform not retaining streaming rights for the Indian Premier Cricket League (IPL).
As a whole, the company’s turnover for the quarter and six months increased by 13 percent and the turnover for six months by 10 percent.
“We are pleased with our achievements this quarter, including the improved financial performance of our streaming business, which reflects the strategic changes we have made across the company to reorient Disney for sustainable growth and success,” said Robert Iger, CEO. The Walt Disney Company.
Disney plans to cut 7,000 jobs as part of a larger restructuring that will see the company cut costs by $5.5 billion.
The new round of layoffs will likely affect Disney Entertainment and ESPN, as well as Disney Parks, experiences and products.
“I do not make this decision lightly. I have tremendous respect and appreciation for the talent and dedication of our employees worldwide, and I am aware of the personal impact of these changes,” Iger said.
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