The streaming service “Disney+” lost 4 million subscribers in the year’s first quarter

Following the release of earnings that only marginally beat analysts’ expectations while the company lost 4 million Disney+ subscribers, Disney (DIS) shares fell 2 points or 4 percent in after-hours trading.

The company reported 157.8 million Disney+ subscribers at the end of March, a 2.5 percent decrease from 161.8 million at the end of 2022. Streaming losses decreased from $887 million in the same period last year to $659 million this year, despite a slowdown in subscriber growth. After former CEO Bob Iger took over as CEO again in November, investors began to place more emphasis on margins than subscriber counts. 7,000 additional jobs will be lost in addition to the 4,000 already lost as part of a $5.5 billion cost-cutting initiative.

We’re proud of our accomplishments this quarter, especially the better financial performance of our streaming business, which reflects the strategic adjustments we’ve been making across the organisation to realign Disney for sustained growth and success, according to Iger.

Disney’s second-quarter earnings per share increased from $0.26 in the equivalent quarter a year earlier to $0.69 in the second quarter. Analyst forecasts were met by revenue of $21.8 billion, which was an increase of 13% from the previous year.

Free cash flow for the enormous entertainment industry increased significantly, from $686 million to $1.98 billion.

Segment sales for the Parks, Experiences, and Products division increased by 17 percent, while those for the Media and Entertainment division increased by 3 percent. Operating income fell to $3.28 billion from $3.69 billion in the previous year as a result of these higher segment revenues. Cable and broadcasting caused a 3% drop in domestic revenue, while declining ad revenue overseas caused an 18% drop in revenue.

In terms of global users, Disney+ has about 158 million, but it is still behind Netflix, which has 232.5 million.

Following the release of earnings that only marginally beat analysts’ expectations while the company lost 4 million Disney+ subscribers, Disney (DIS) shares fell 2 points or 4 percent in after-hours trading.

The company reported 157.8 million Disney+ subscribers at the end of March, a 2.5 percent decrease from 161.8 million at the end of 2022. Streaming losses decreased from $887 million in the same period last year to $659 million this year, despite a slowdown in subscriber growth. After former CEO Bob Iger took over as CEO again in November, investors began to place more emphasis on margins than subscriber counts. 7,000 additional jobs will be lost in addition to the 4,000 already lost as part of a $5.5 billion cost-cutting initiative.

We’re proud of our accomplishments this quarter, especially the better financial performance of our streaming business, which reflects the strategic adjustments we’ve been making across the organisation to realign Disney for sustained growth and success, according to Iger.

Disney’s second-quarter earnings per share increased from $0.26 in the equivalent quarter a year earlier to $0.69 in the second quarter. Analyst forecasts were met by revenue of $21.8 billion, which was an increase of 13% from the previous year.

Free cash flow for the enormous entertainment industry increased significantly, from $686 million to $1.98 billion.

Segment sales for the Parks, Experiences, and Products division increased by 17 percent, while those for the Media and Entertainment division increased by 3 percent. Operating income fell to $3.28 billion from $3.69 billion in the previous year as a result of these higher segment revenues. Cable and broadcasting caused a 3% drop in domestic revenue, while declining ad revenue overseas caused an 18% drop in revenue.

In terms of global users, Disney+ has about 158 million, but it is still behind Netflix, which has 232.5 million.