Disney Reports Q1 Subscriber Erosion

Disney+ shed 2.4 million subscribers in the first quarter of fiscal 2023, while overall revenues at The Walt Disney Company rose by 8 percent to $23.5 billion.

“After a solid first quarter, we are embarking on a significant transformation, one that will maximize the potential of our world-class creative teams and our unparalleled brands and franchises,” said Robert A. Iger, CEO. “We believe the work we are doing to reshape our company around creativity, while reducing expenses, will lead to sustained growth and profitability for our streaming business, better position us to weather future disruption and global economic challenges and deliver value for our shareholders.”

Disney Media and Entertainment Distribution reported stable revenues of $14.8 billion. Linear network revenues fell by 5 percent to $7.3 billion, largely due to lower ad revenues in the company’s international footprint. Direct-to-consumer revenues rose by 13 percent to $5.3 billion. The company reported total Disney+ subs of 161.8 million, a 1-percent reduction, with 46.6 million in the U.S. and Canada, 57.7 million internationally and 57.5 million for Disney+ Hotstar. Hulu subs rose to 48 million, with 43.5 million on the SVOD tier, ESPN+ subscribers increased to 24.9 million. Content sales/licensing and other revenues for the quarter increased 1 percent to $2.5 billion.

Disney Parks, Experiences and Products revenues for the quarter increased 21 percent to $8.7 billion.