In recent months, Disney+ has revised its pricing strategy. Mirroring Netflix, the streaming service has started charging its subscribers for account sharing. Since last fall, it has been possible to add an additional person to the subscription for 5.99 euros per month. Other viewers who enjoy Disney+ without being part of the same household will be blocked.
Subsequently, Disney+ increased the price of its subscriptions. Now, you have to pay 9.99 euros per month for the standard offer, compared to 8.99 euros before the increase. For a reduced price, Disney encourages users to turn to the subscription with advertisements, billed at 5.99 euros per month. Here again, the American platform imitates its main rival, the leader Netflix, which has revised its prices upwards several times in recent years while offering a cheaper formula, but riddled with ads.
700,000 subscribers have deserted
Unfortunately for Disney+, these measures have alienated part of its clientele. As shown in the latest financial results of the Disney group, the streaming service lost 700,000 subscribers worldwide during the fourth quarter of 2024. These results correspond to the first fiscal quarter of 2025. Disney's staggered fiscal year begins on October 1 and ends on September 30 of the following year. This is why the financial year does not coincide with the calendar year.
Netflix’s rival now has 124.6 million subscribers. This is the very first time that Disney+ has lost customers since its launch in November 2019. Until now, the service had increased its user base at high speed, before stagnating. Note that the decline does not concern subscribers residing in the United States. In its native country, Disney+ has slightly increased its customer base. It is subscribers located abroad who have canceled their plan.
To explain this decline, we can first point the finger at the price increase, followed by the ban on account sharing. Let's also mention the failure of several Disney+ original series, namely Agatha All Along, a Marvel show based on a witch seen in WandaVision, and Skeleton Crew, a Star Wars production. In general, original series are the growth drivers of Disney+.
Towards a moderate loss in early 2025
To compensate for this net loss, Disney can count on its other streaming services, such as Hulu. Taking into account all its platforms, Disney announces having gained 900,000 more customers for a total of 178 million subscribers. According to Bob Iger, Disney's CEO, the loss of Disney+ subscribers in the first quarter of 2025 is expected to be more "modest". We should not expect a hemorrhage of subscribers. Nevertheless, the wave of desertion is likely to continue.
Despite Disney+’s results, The Walt Disney Company says its streaming services remain largely profitable. Average revenue per subscriber rose 4%, boosted by last year’s price increases. Although the group’s revenue rose, Disney shares were slightly lower following the results. The group’s mixed results have apparently prompted investors to be cautious.
0 Comments