The Walt Disney Company's leading streaming service, Disney+, saw a decline of four million subscribers in its second quarter, which ended on April 1st. This occurred as the company was approaching its third wave of layoffs. The main reason for the decline in Disney+Hotstar's subscriber base is believed to be the loss of streaming rights for the Indian Premier Cricket (IPL) League, which led to a decrease in Indian subscribers.
In a statement, the company said, "Disney+Hotstar average monthly revenue per paid subscriber decreased from $0.74 to $0.59 due to lower per-subscriber advertising revenue.”
According to its Q2 2023 report, The Walt Disney Company revealed that it had 157.8 million subscribers, down from 161.8 million in the previous quarter. The decrease was largely due to the loss of subscribers on Disney+Hotstar, which saw an 8% decline in its subscriber base, dropping from 57.5 million in Q1 2023 to 52.9 million in Q2.
The company's revenues increased by 13% for the quarter and 10% for the first six months, according to the report.
Robert Iger, CEO of The Walt Disney Company said, "We're pleased with our accomplishments this quarter, including the improved financial performance of our streaming business, which reflect the strategic changes we've been making throughout the company to realign Disney for sustained growth and success.”
As part of a larger reorganization aimed at cutting $5.5 billion in costs, Disney is planning to reduce its workforce by 7,000 jobs. This latest round of job cuts is expected to impact Disney Entertainment, ESPN, Disney Parks, Experiences, and Products.
Iger further said, "I do not make this decision lightly. I have enormous respect and appreciation for the talent and dedication of our employees worldwide and I am mindful of the personal impact of these changes.”
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Inputs from IANS
