Disney reported a “modest decline” in Disney+ subscribers in the last quarter. It expects a further “modest decline” as a result of increased prices and increased subscriber churn, as well as the expiry of a wholesale deal in Europe.
The number of subscribers to Disney+ in the United States and Canada rose slightly in the last quarter but fell internationally, after accounting for subscribers in Southeast Asia previously reported with Disney+Hotstar. The adjusted total now stands at 124.6 million, which is lower than the previous quarter on a comparable basis by just over 0.5%.
The number of Disney+ Hotstar subscribers is no longer included in this figure as this business was included in the Star India Transaction with Reliance Industries to form a joint venture in India.
The number of Hulu subscribers rose to 53.6 million from 52.0 million, of which 4.6 million were for the live television package, unchanged from the previous quarter. ESPN+ subscribers fell slightly to 24.9 million from 25.6 million.
The average monthly revenue per paid Disney+ subscriber was $7.99 in the United States, compared to $12.52 for Hulu, or $99.22 with the live television package.
Of total quarterly revenues of $24.69 billion, direct-to-consumer revenue accounted for $6.07 billion, up by 9% on the previous year, producing operating income of $293 million.
To put that in context, Disney had overall quarterly revenues of $10.87 billion from entertainment, $4.85 billion from sports, and $9.41 billion from experiences, including parks, experiences and cruises. It now has six cruise ships, with another seven in development.
Bob Iger, the chief executive of Disney, said the Disney+ platform would continue to develop, with recent enhancements like showcasing the top ten series and movies, implementing further personalisation features, and offering programme playlists.
The addition of an ESPN tile on Disney+, following the Hulu tile earlier in the year, provides bundle subscribers with the full range of ESPN+ programming, while also making selected material available to all Disney+ subscribers. The company said it reaffirmed its belief in aggregating its content and brands in one app. It will add the full suite of ESPN networks later in the year.