Disney+ Drops Subscribers for First Time Since Launch

For the first time since launching over three years ago, Disney+ has tallied a net loss in subscriber accounts. Ahead of Disney’s earnings call Wednesday afternoon, the company unveiled it lost 2.4 million subscribers over the last three months of 2022. In spite of its first subscriber net-loss, the Mouse still beat Wall Street expectations thanks to an above-average performance from the company’s parks division.

“After a solid first quarter, we are embarking on a significant transformation, one that will maximize the potential of our world-class creative teams and our unparalleled brands and franchises,” Disney chief Bob Iger offered in a pre-call press release. “We believe the work we are doing to reshape our company around creativity, while reducing expenses, will lead to sustained growth and profitability for our streaming business, better position us to weather future disruption and global economic challenges and deliver value for our shareholders.”

Disney ended up posting revenues of $23.51 billion for the quarter, an 8-percent growth over the end of FY 2022. The haul is slightly more than what insiders anticipated, with some suggesting the company would earn around $23.57 billion in the first quarter of FY 2023.

Wednesday’s earnings call also marks Iger’s first such call since returning to the company to take over for Bob Chapek, the executive who initially took over for Iger in 2020.

“I am extremely optimistic for the future of this great company and thrilled to be asked by the Board to return as its CEO,” Iger said upon his return to Disney. “Disney and its incomparable brands and franchises hold a special place in the hearts of so many people around the globe—most especially in the hearts of our employees, whose dedication to this company and its mission is an inspiration. I am deeply honored to be asked to again lead this remarkable team, with a clear mission focused on creative excellence to inspire generations through unrivaled, bold storytelling.”