As Third Layoff Wave Approaches, Disney+ Loses 4 Million Subscribers
New Delhi, 11th May 2023: As Disney reached its third round of layoffs, the flagship streaming service Disney+ of the Walt Disney Corporation lost four million subscribers in its second quarter, which concluded on April 1.
The business recorded 157.8 million customers in its Q2 2023, down from 161.8 million in the prior quarter. Disney+Hotstar’s subscriber base fell by 8%.
Disney+Hotstar, which lost 8% of its subscriber base, from 57.5 million in Q1 2023 to 52.9 million in Q2, was the primary cause of the decline.
According to a statement from the corporation, “Disney+Hotstar average monthly revenue per paid subscriber decreased from $0.74 to $0.59 due to lower per-subscriber advertising revenue.”
The platform losing the privilege to stream the Indian Premier Cricket (IPL) League is the main cause of the decline in Indian customers.
The company’s overall revenue growth for the quarter and six months was 13% and 10%, respectively.
According to Robert Iger, CEO of The Walt Disney Company, “We’re proud of our accomplishments this quarter, including the improved financial performance of our streaming business, which reflects the strategic changes we’ve been making throughout the company to realign Disney for sustained growth and success.”
Disney intends to lay off as many as 7,000 positions as part of a bigger restructuring that will result in cost savings of $5.5 billion.
Disney Entertainment, ESPN, as well as Disney Parks, Experiences, and Products, are all expected to be impacted by the latest wave of job layoffs.
