Disney+ loses subscribers for the first time in its history. Launched in late 2019, Disney+ quickly became one of the most popular streaming services on the market by offering a combination of legacy Disney content and new Star Wars and Marvel streaming shows. Due to Disney's decreasing stock and other issues, Bob Iger was recently reinstated as CEO and is looking to lead to a "significant transformation" at the Mouse House. In terms of total subscribers, Disney+ has been consistently climbing, though still lags behind Netflix and Prime Video for the number one spot in the streaming world.
Now, Disney+ has suffered a subscriber loss for the first time ever. The company's quarterly earnings report (per Variety) reveals that Disney+ lost a total of 2.4 million subscribers during the last three months of 2022. This is the streaming service's first reported subscriber loss since its inception in late 2019. Right now, Disney+ stands at 161.8 million total subscribers.
Why Disney+ Is Losing Subscribers
There are a few different reasons why Disney+ is losing subscribers. The main reason fueling the loss is a massive decline in international subscribers on Disney+ Hotstar, which is the version of the streaming service available in India and parts of Southeast Asia. As of last year, Disney lost streaming rights to the Indian Premier League cricket matches, which resulted in a massive subscriber loss in those areas.
Another reason behind the subscriber loss is the recent Disney+ price increase. In December, Disney+ increased the price of its ad-free plan from $7.99 to $10.99 per month in the United States while adding an additional $7.99 ad-supported tier. However, Iger claims Disney+ "only suffered a de minimis loss of subs" due to this price increase.
Another possible, albeit minor reason driving the subscriber loss could be churn, which is when people unsubscribe and resubscribe based on when new content is being offered. Right now, there are no new live-action MCU or Star Wars shows streaming weekly on Disney+, with She-Hulk: Attorney at Law ending in October and Andor season 1 ending in November. This drought will end when The Mandalorian season 3 returns on March 1, which will likely bring some subscribers back to Disney+.
Source: Variety