Disney+ Sees Subscriber Decline but Reports Increased Profits

In a recent financial report, Disney announced a decline of approximately 700,000 subscribers for its streaming service, Disney+, by the end of 2024. Despite this drop, the company has successfully surpassed market expectations for revenue and profit.

According to Disney's latest figures, the total number of Disney+ subscribers stands at 124.6 million, which represents a 0.6% decrease from the previous quarter. Although there was a slight uptick of 1% in subscribers within North America, the international market experienced a more significant loss, with around 2% of customers opting to cancel their subscriptions.

Disney anticipates that this downward trend in subscriber numbers may continue into the upcoming quarter. However, the company has reported that the average subscription price for Disney+ has increased, contributing to higher overall revenues. The global average cost of a subscription has risen from $7.20 to $7.55, marking a 5% increase.

Despite the challenges faced by Disney+, the conglomerate's overall revenue for the fourth quarter of 2024 rose by 4.8% year-over-year, reaching $24.7 billion. Moreover, the operating profit across all segments surged by 30.5%, amounting to $5.1 billion. This growth is largely attributed to the strategic cost-cutting measures implemented by CEO Robert Iger, who has focused on reducing expenses by producing fewer costly series and films, particularly within the popular 'Star Wars' and Marvel franchises.

Disney's various business sectors have all reported increased revenue. The entertainment division, which includes film and television productions as well as streaming services, saw a 9% increase in revenue, totaling $10.87 billion. Furthermore, the company's theme parks and cruise lines experienced a revenue growth of 3%, bringing in $9.42 billion. Disney's Chief Financial Officer, Hugh Johnston, expressed his surprise at the strength of consumer spending, which exceeded expectations.

Looking ahead, Disney expects a continued slight decrease in Disney+ subscriber numbers in the current quarter. However, the company projects a substantial increase in operating profit for the entire year, with forecasts indicating a double-digit percentage rise in the entertainment division. Additionally, revenue from the parks and cruise segment is anticipated to grow between 6% and 8%.