Disney+ experienced a loss of 1.3 million subscribers in the final quarter of 2023 due to a price increase, although it managed to reduce its streaming business losses by $300 million during this period. The company announced these figures during its Q1 FY24 Earnings Call, revealing a decrease in Disney+ Core subscribers from 112.6 million to 111.3 million within the same time frame. Despite this decline, Hulu gained 1.2 million subscribers, reaching 45.1 million.
The ad-free plan for Disney+ saw a price hike from $10.99/month to $13.99/month in October 2023, while the ad-supported tier remained at $7.99/month. Additionally, a combined ad-free Disney+ and Hulu plan is available for $19.99/month. Disney aims to add between 5.5 million and 6 million Disney+ Core subscribers in Q2 2024.
Despite the subscriber loss, Disney remains optimistic about the profitability of its streaming business by the end of FY24, with a narrowed loss of $300 million in Q1 compared to Q4. The company reported $500 million in cost savings for the quarter and expects to exceed its $7.5 billion annualized savings target by the end of fiscal 2024.
While Disney faced challenges in its linear networks sales, it saw increased revenue in its direct-to-consumer segment. Disney CEO Bob Iger expressed confidence in the company’s future growth and shareholder value creation, citing strong performance across its businesses. The company also announced a 50% increase in its cash dividend per share, reflecting its commitment to shareholders.