Disney shares plummet 8% as subscribers leave the streaming service en masse
Walt Disney shares plummeted after the streaming service lost 4 million subscribers in the first three months of 2023.
In an update to Wall Street, the entertainment giant behind the Pixar, Star Wars and Marvel movies said its Disney+ service had 158 million paying customers at the end of March — 4 million less than at the beginning of January, due to the loss of 2.4 million. million. m subscribers in the previous quarter.
Analysts had expected it to add more than 1 million customers this year.
Tune in: Disney had 158 million paying customers at the end of March – 4 million fewer than at the beginning of January
This sent shares down 8 per cent, wiping £12bn off the company’s value, and underscoring the scale of the challenge for boss Bob Iger.
He has returned as CEO for two years and is under pressure to keep streaming services from bleeding money.
After subscriptions closed, streaming losses fell to £527m between January and March, an improvement of £320m on the previous quarter.
But the drop in subscribers has fueled concerns that the media and entertainment company’s success in mitigating losses could come at the expense of growth.