Disney+ Subscriber Losses: The Real Numbers

Yes, Disney+ lost millions of subscribers. In the fiscal third quarter of 2024, Disney+ Core (excluding India’s Disney+ Hotstar) lost 1 million subscribers, and in the fiscal second quarter of 2024, it lost 0.7 million. These losses came after a period of rapid growth, and the company has since reported modest gains, but the overall trend highlights the challenges of the streaming market.

Background: The Boom and the Bust

Disney+ launched in November 2019 with a massive marketing push and a deep catalog of Disney, Pixar, Marvel, Star Wars, and National Geographic content. Within 16 months, it had surpassed 100 million subscribers, a milestone that took Netflix over a decade to reach. The COVID-19 pandemic accelerated this growth, as people stuck at home turned to streaming. However, the post-pandemic landscape brought a slowdown. As people returned to work and other activities, and as competition intensified, Disney+ began to see subscriber numbers plateau and then decline.

What the Subscriber Numbers Actually Show

Disney reports subscriber numbers quarterly. The key figure to watch is Disney+ Core, which excludes Disney+ Hotstar (the service in India and parts of Southeast Asia, which has a much lower average revenue per user). Here’s a look at recent trends:

• Q1 FY2024 (ended Dec 30, 2023): Disney+ Core added 1.2 million subscribers, reaching 111.3 million.
• Q2 FY2024 (ended Mar 30, 2024): Disney+ Core lost 0.7 million subscribers, falling to 110.6 million.
• Q3 FY2024 (ended Jun 29, 2024): Disney+ Core lost another 1 million subscribers, dropping to 109.6 million.
• Q4 FY2024 (ended Sep 28, 2024): Disney+ Core added 0.7 million subscribers, rising to 110.3 million.

These are the official numbers from Disney’s earnings reports. The losses in Q2 and Q3 of 2024 were primarily attributed to price increases and the crackdown on password sharing, which led some subscribers to cancel or not renew.

Why Did Subscribers Leave?

Several factors contributed to the decline:

• Price Increases: Disney has raised prices for Disney+ multiple times. In October 2023, the ad-supported plan went from $7.99 to $13.99 per month, and the ad-free plan went from $10.99 to $13.99. In October 2024, prices were raised again. These increases made the service less affordable for some.
• Password-Sharing Crackdown: Following Netflix’s lead, Disney began restricting password sharing in 2024. This forced many users who were mooching off friends or family to either create their own accounts or leave.
• Content Spending Cuts: Disney has been reducing its content budget, which means fewer new original shows and movies. Some subscribers may have felt the content wasn’t worth the price.
• Market Saturation: The streaming market is crowded. Consumers are choosing between Disney+, Netflix, Max, Hulu, Prime Video, and many others. Some may have decided to rotate subscriptions or cut back on streaming altogether.

How to Interpret the Numbers

Subscriber counts are a key metric, but they don’t tell the whole story. Disney has been focusing on profitability over raw subscriber growth. The company has raised prices and cut costs, and as a result, its streaming division has become profitable. In Q3 FY2024, Disney’s streaming business reported a profit of $47 million, a major turnaround from a loss of $512 million a year earlier. So, while subscriber numbers dipped, the revenue per subscriber increased, and the financial health of the business improved.

It’s also important to distinguish between Disney+ Core and Disney+ Hotstar. Hotstar has a much lower average revenue per user (ARPU), so a loss of Hotstar subscribers doesn’t hurt revenue as much. Disney has actually been losing Hotstar subscribers for a while, partly due to losing rights to Indian Premier League cricket, but this is less concerning to investors.

Common Problems and Misconceptions

One common misconception is that Disney+ is losing subscribers overall. In fact, in Q4 FY2024, Disney+ Core added subscribers again. The losses were concentrated in specific quarters, and the overall picture is one of fluctuation rather than a continuous decline.

Another misconception is that the subscriber losses are due to a lack of good content. While Disney has cut back on output, it still releases major hits like Frozen 2, Moana, and Inside Out 2 (though these are often in theaters first). The real issue is more about price sensitivity and market saturation.

It’s also worth noting that Disney bundles Disney+, Hulu, and ESPN+ together. Many subscribers are counted in the bundle, and the individual numbers can be misleading. The bundle offers a better value, but it also means Disney is getting less revenue per subscriber than if they were paying for each service separately.

Comparison with Other Streaming Services

Disney+ is not alone in facing subscriber challenges. Netflix, the industry leader, saw a subscriber loss in early 2022 (the first in a decade) but has since rebounded with its ad-supported tier and password-sharing crackdown. Other services like Paramount+ and Peacock have also seen fluctuations. The streaming market is maturing, and growth is no longer guaranteed.

Netflix has a much larger global subscriber base (over 280 million) and a more diversified content library. Disney+ is more reliant on its core franchises, which can be both a strength and a weakness. It’s a strength because those brands are incredibly popular, but a weakness because if a new Marvel or Star Wars show flops, there’s less to fall back on.

Costs and Value

Disney+ pricing (as of late 2024) is:

• Disney+ with Ads: $9.99/month or $99.99/year
• Disney+ Premium (no ads): $15.99/month or $159.99/year
• Disney+ Premium (no ads) with Hulu and ESPN+ bundle: $26.99/month

Whether this is good value depends on your viewing habits. If you watch a lot of Disney, Marvel, and Star Wars content, it’s likely worth it. If you only watch one or two shows, you might be better off subscribing for a month and then canceling.

Alternatives to Disney+

If you’re considering leaving Disney+, there are several alternatives:

• Netflix: The biggest streaming service, with a huge library and many original hits.
• Max: Home to HBO originals, Warner Bros. movies, and DC content.
• Hulu: Focuses on TV shows and has a strong selection of current-season network shows.
• Prime Video: Included with Amazon Prime, offers a mix of original and licensed content.
• Peacock: NBCUniversal’s service, with a good selection of movies and shows.

Many people choose to rotate subscriptions, subscribing to one service for a few months, then switching to another. This can be a cost-effective way to see everything you want.

Frequently Asked Questions

Did Disney+ really lose millions of subscribers?

Yes, in the fiscal second and third quarters of 2024, Disney+ Core lost a combined 1.7 million subscribers. However, it regained some in the fourth quarter, so the net loss for the year was about 1 million.

Why did Disney+ lose subscribers?

The main reasons were price increases, the crackdown on password sharing, and a reduction in new content. These factors made the service less appealing to some subscribers.

Is Disney+ still profitable?

Yes, Disney’s streaming division (which includes Disney+) has been profitable since the second half of 2024. The company has focused on raising prices and cutting costs to achieve this.

Will Disney+ continue to lose subscribers?

It’s uncertain. Disney has said it expects subscriber growth to resume, but the market is competitive. The company is focusing on profitability rather than subscriber numbers, so it may be willing to accept a slower growth rate.

How does Disney+ compare to Netflix?

Netflix has more subscribers and a broader content library, but Disney+ has a strong niche with its family-friendly and franchise content. Both are profitable and face similar challenges.

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