Disney gave investors far more disappointing news as it approaches its third round of anticipated layoffs and battles with production delays brought on by the continuing writers strike.
Disney+ Hotstar streaming service, lost four million subscribers in the second quarter of 2023, reducing the total to 157.8 million from 161.8 million in the first. Analysts anticipated a 163.17 million increase in subscribers. The company’s decision to not maintain streaming rights for the Indian Premier Cricket League has angered many Indian viewers.
#Disney+ has lost 4 million subscribers in Q2 2023. Recent reports are #DisneyPlus And #Hulu to collab and launch new APP next year!!@GossipsTv pic.twitter.com/vHU55xdxU5
— GossipsTv(GTv) (@GossipsTv) May 11, 2023
It announced its first subscription drop since its launch in 2019 during the most recent quarter. In Q1, the streamer’s subscriber base fell by 2.4 million. During the most recent earnings call, CEO Bob Iger also disclosed that Disney will be undergoing significant restructuring, including job layoffs that will effect 7,000 employees.
The company has already experienced two waves of layoffs, and a third is imminent. As streaming series tend to run for shorter seasons than cable shows, more viewers would probably think about terminating their subscriptions if less content were to be released on Disney+ as a result of the strike.
Despite these drawbacks, the corporation bragged about its streaming division’s increased financial success. Losses for the quarter fell to $659 million from $1.1 billion in the previous quarter. Additionally, the division’s revenue increased, reaching $5.5 billion.
However, due to the Writers Guild of America (WGA) strike, which began last week after the group was unable to reach an amicable agreement with the Alliance of Motion Picture and Television Producers, the company recently halted production on Marvel’s “Blade” and the Star Wars series “Andor.”