We love a good binge-watching session as much as the next person.
©Disney
And when it comes to streaming some of our favorites from the Disney media library, Disney+ seems to be the best place to go. So why is Disney streaming struggling?
Disney owns so many media options, now. You can watch the classic Disney films and Disney Channel shows, not to mention the libraries from Marvel, Star Wars, National Geographic, The Muppets, and Fox.
©Disney
Despite this, during its first quarter 2023 earnings report, Disney confirmed that Disney Plus lost subscribers for the first time in its history. Between October and December 2022, the streaming platform’s global user base shrunk by 2.4 million.
So what happened? When you look at the breakdown, domestic Disney+ subscribers (in the U.S. and Canada) increased from 46.4 million to 46.6 million, and international subscribers (excluding Disney+ Hotstar) increased as well. With Disney+ alone, the subscriber count went from 102.9 million to 104.3 million. Not a huge increase, but an increase nonetheless.
©Disney
The main problem area is with Disney+ Hotstar (only available in international markets). The service lost 6% of its subscribers in the past quarter, dropping from 61.3 million to 57.5 million total. So technically, no losses from Disney+ directly in the domestic markets, even though the overall number has decreased. As far as ESPN+ and Hulu go, both of those services are up in subscriber count as well, with 24.9 million and 48 million, respectively.
©Disney
Why are Disney+ subscribers mad enough to cancel their subscriptions? Let’s look at some factors.
The first factor could be Disney’s political stance. The trend to cancel Disney+ and Disney World in domestic markets has originated from people who are expressing their frustration with Disney’s views. And this comes from both sides of the political spectrum. There is the conservative side that expresses concern that Disney is using its media platform to promote a “woke” agenda. And then there is the flip side of the coin, with communities feeling that Disney has failed to adequately or openly include LGBTQ+ representation or the stories of other marginalized peoples.
Turning Red Preview
In this same vein, Disney Plus also provides limited content for audiences beyond America/Europe. There’s the problem that Disney Plus doesn’t really cater to Indian or Southeast Asian audiences, which is the largest market for media consumption. When families don’t see stories that reflect their culture, communities, or families, then that appeal will likely decline, as we have already seen.
The second factor is also the rate of new, unique content releases. Though Disney Plus continues to release shows every few months, many of them have not had the draw or popularity of The Mandalorian or Hawkeye. Series and shows like Extraordinary, Willow, and Limitless with Chris Hemsworth are not the subscriber drivers, or even user retainers Disney needs them to be. If people don’t believe they’re getting value for money, they’re more likely to cancel their subscriptions.
1988 Willow Poster ©Disney
The final factor is the price tag. The ongoing cost-of-living concern means consumers are being more careful about what they spend their money on. Last year in the UK, two million people canceled their subscriptions to streamers, including Netflix, Prime Video, and Disney Plus. With people tightening the purse strings, streaming subscriptions are falling across the board.
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We got some interesting quotes from that Quarter 1 earnings call as well. Bob Iger noted that they “can’t get growth without growing subscribers, but we’re looking to grow quality subscribers that are loyal.” Iger also noted that they’re looking to “lean more into our core franchises and our brands” and “rebalance marketing of the platform versus marketing of the programs.” It looks like we’ve got some changes on the horizon!
NEWS: Disney Adding Hulu Content to Disney+ App
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For me it’s Content related. The long gaps between StarWars/Marvel shows being released is not good. If they had a new episode weekly, year round for those two genera’s, I’d want to stick around. But since maybe only 30/52 weeks a year get new show content, that’s not enough to pay for the service year round. I don’t watch any other programs and never rewatch old movies.
I have been a Disney+ subscriber from the beginning, but the monthly fees are too much. I think Disney should offer an annual fee of around $120.00 for Disney+ and Hulu, I don’t want a monthly fee. Offering this would certainly be a +, more subscribers and more content. And personally I will watch a movie 50 times over.
Something as trivial as “politics” or a “woke agenda” doesn’t factor into anything in regard to my entertainment choices. I make choices based on quality of content and value for money. Hit or miss content is going to yield a drop in subscribers.
Yes, our people need to Choose
I enjoyed Disney plus streaming. But lately there is very little new shows available anymore. Kind of dried up all shows that were being released each week. So they now raised prices and now added too many commercials. No thanks, I’ll go without.
The raise in cost for domestic subscribers defies logic. The fact that you are making us pay for a bad business decision on your part should not be passed on to subscibers on your domestic market. In addition you are piggy backing on an increase in rate hikes by other streaming services. I am sorry to say that I am discontinuing my since the watch party aspect was a great way to share experiences with my grandson. His family is a military family and based far away. These are simply too many reasons to continue my service.
The problem for me is the app. It’s TERRIBLE! You’d think Disney would have enough money to have the best app. Sadly it’s the worst. Crashes constantly causing us to uninstall and reinstall. Why would I pay that kind of money for something that doesn’t work