Disney+ has lost 700,000 viewers a month but has still beaten Wall Street's expectations when it comes to earnings - and there's one movie in particular to thank.
In the final three months of 2024, the streaming service reported 124.6 million subscribers, down from the 125.3 million it had the previous quarter.
That means Disney+ is 700,000 viewers a month down compared to the end of last quarter.
Despite this, the company certainly isn't worried about money, and has smashed its profit forecasts.
Newly-released figures show the Walt Disney Co earned 2.55 billion dollars (£2.04 billion), or 1.40 dollars per share, for the period ending December 28.
Disney+ lost 700,000 subscribers in the final three months of 2024 (Sheldon Cooper/SOPA Images/LightRocket via Getty Images)
Not counting one-time charges and benefits, earnings were 1.76 dollars per share, which is 32 cents better than Wall Street was expecting, according to analysts surveyed by Zacks Investment Research.
Revenue rose by five percent to $24.69 billion, slightly better than analysts had projected. But revenue for content sales/licensing and 'other' leaped up 34 percent due to the strong performance of one particular blockbuster.
Moana 2 released on November 29 and had exceeded $1 billion at the global box office by January 20, becoming the studio’s third 2024 release to hit the impressive milestone, after Deadpool and Wolverine and Inside Out 2.
The popular sequel was initially intended as a mini-series to stream on Disney+ but was instead produced for the big screen.
It sees Auliʻi Cravalho reprise her starring role as the ocean's 'chosen one', while Dwayne 'The Rock' Johnson returns as demigod Maui.
Three years on from the events of the first movie, Moana takes to the far seas of Oceania after receiving an unexpected call from the wayfinding ancestors.
It might have been a commercial success, but Moana 2 wasn't met with the same critical enthusiam as its 2016 predecessor.
Rotten Tomatoes critics awarded it a rather average 61 percent, while Moana was scored a glowing 95 percent.
Auli'i Cravalho and Dwayne 'The Rock' Johnson reprised their roles for Moana 2 (Tim P. Whitby/Getty Images for The Walt Disney Company Limited)
In a joint statement about Disney's first quarter earnings, CEO Bob Iger and CFO Hugh Johnston said: “Streaming remains a success story for the Company as we build Disney+ into the ultimate digital destination for audiences to access the very best we have to offer in film, television, sports, and news — all in one place.
"And our Q1 Entertainment Direct-To-Consumer results reflected improved profitability.”
Jesse Cohen, senior analyst at Investing.com, said: “Disney’s earnings beat underscores the success of its cost-cutting initiatives and resilient performance in parks and studios, offsetting headwinds in streaming.
“However, the surprising loss of Disney+ subscribers – the first decline since its 2019 launch – raises red flags about saturation in a crowded market and the trade-offs of its pricing strategy.”
Disney says it foresees a modest decline in Disney+ subscribers in the second quarter when compared with the first quarter.
)
English (US) ·