The Walt Disney Company reported a dip in its streaming subscriber base for the last quarter of 2024, marking a shift in its fiscal year 2025. Disney+ saw a loss of 700,000 subscribers, bringing its total to 124.6 million globally, excluding its budget service Disney+ Hotstar in India. ESPN+ also experienced the same subscriber loss during this period. However, Hulu, another key part of Disney’s streaming portfolio, provided a silver lining, adding 1.6 million subscribers and reaching 53.6 million total subscribers.
Despite these losses, Disney’s streaming business remains profitable for the third consecutive quarter, which highlights the company’s resilience and its balanced approach to maintaining revenue and managing costs.
Why Subscribers Are Leaving
Disney attributes the subscriber losses to recent price hikes and the end of promotional offers. This marks a stark contrast to the previous quarter, where Disney+ saw an influx of 4.4 million new subscribers. CEO Bob Iger acknowledged the challenges, saying the quarter’s results showed the company’s ability to drive creative and financial growth, even in the face of setbacks. While losses were expected, Disney remains optimistic about its long-term strategy.
Looking ahead, Disney projects a “modest decline” in Disney+ subscribers through 2025, driven by the continued impact of higher prices and a move toward more premium offerings.
Stronger Financial Performance
Despite subscriber setbacks, Disney exceeded Wall Street’s financial expectations for Q1 2025. Analysts had predicted earnings of $1.43 per share on $24.55 billion in revenue, but Disney reported earnings of $1.76 per share on $24.7 billion in revenue. This strong performance was driven not only by price hikes but also by the significant success of Disney’s film releases.
Box Office Triumphs Boost Disney’s Revenue
Disney’s film division had a standout quarter, led by the success of Moana 2, which grossed over $1 billion globally. This sequel outperformed the original, which was the most-streamed movie of 2024. Originally intended as a Disney+ series, Moana 2 was shifted to a theatrical release, a decision that paid off handsomely.
Other major successes included Mufasa: The Lion King, a prequel that earned $650 million worldwide, though it couldn’t quite match the heights of previous Lion King films. Additionally, Searchlight Pictures’ A Complete Unknown, starring Timothée Chalamet as Bob Dylan, premiered on Christmas Day, and its success is expected to grow as the awards season approaches.
CEO Bob Iger celebrated the quarter’s performance, noting that Disney’s studios had the top three movies of 2024, helping to position the company for continued growth.
Strong TV and Streaming Performance
In addition to its box office triumphs, Disney maintains its lead as the top media company for total TV usage, according to Nielsen. Disney+ and Hulu continued to draw in audiences with consistent hits like Bluey, Grey’s Anatomy, and The Simpsons. Holiday classics like Home Alone and Hocus Pocus boosted viewership on Disney+ during the season, and the streaming premiere of Deadpool & Wolverine proved to be a major draw for subscribers.
To strengthen its streaming presence further, Disney has integrated an ESPN tile on Disney+, a move that makes sports content more accessible and convenient for subscribers, while also expanding engagement across the platform.
Looking Ahead: Challenges and Strategic Investments
While Disney remains confident about its future, the company recognizes the challenges ahead, particularly the continued loss of subscribers due to price increases and promotional expiration. However, Disney’s focus on premium content and strategic investments, including its film slate and theme parks, are expected to help mitigate these impacts.
The company’s theme park division showed resilience, contributing significantly to overall revenue, as Disney continues to invest globally in its parks and experiences.
