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Disney Plus lost 2.4 million subscribers, but the company expected big losses

The company expected Disney Plus to drop 3 million subscribers this quarter. | Fountain: Disney

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entertainment giant Disney He presented his earnings for the first fiscal quarter of 2023 and said that the number of subscribers did not fall “as much as expected.”

The person responsible for providing the information was the CEO Bob Iger, his first such meeting since he took office following the removal of Bob Chapek.

Layoffs, but the numbers are in green

Disney revenue was $23.51 billion, much more than expected.

Regarding your subscription disneyplusthe number of subscribers fell to 161.8 million, but was predicted to fall to 161.1 million.

“After a strong first quarter, we are embarking on a significant transformation that will maximize the potential of our world-class creative teams, as well as our unrivaled brands and franchises. We believe that the work we are doing to reshape our company around creativity while reducing costs will lead to sustainable growth and profitability of our broadcast business, improve our position to withstand future global economic shocks and challenges, and benefit our shareholders. “. , said the CEO.

To continue growth, Iger announced that the media giant would cut about 7,000 jobs, or 3.2% of its global workforce, to try to cut $5.5 billion.

As for the reorganization Disney It will now be divided into three main segments: disney Entertainment, led by co-chairs Dana Walden and Alan Bergman; ESPN led by Jimmy Pitaro; Parks, Experiences & Food Directed by Josh D’Amaro.

Why did Disney Plus subscribers drop?

disneyplus it lost 2.4 million followers in the quarter, but was expected to lose 3 million.

One possible response to this drop is to raise the prices of data plans, despite the launch of an affordable model with ads.

On Wednesday, the company said it would no longer provide long-term underwriting advice to “de-emphasize short-term quarterly performance,” Iger said by phone. Netflix made a similar decision late last year.

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Source: RPP

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