Disney+ Could Be “Millions Short” of Subscriber Goal

Disney has seemingly hit a wall for its streaming numbers on Disney+, and now those numbers are falling, potentially setting Disney up for “tens of millions of subscribers short” of their 2024 estimates, according to the Orange County Register (OC Register.)

Former CEO Bob Chapek had set a goal of 215 million to 245 million. But Disney is losing subscribers quickly. Overseas Disney+ Hotstar was already losing subscribers after Disney lost the rights to Cricket matches in some countries serviced by their streaming service. After Disney announced price increases and crackdowns on password sharing, more customers quit the service.

This may explain why Disney is offering their $1.99 deal for three months to new and returning customers in an attempt to gain some footing before the end of the quarter.

As I stated in a previous article, the deal Disney has made with Charter Spectrum will potentially add 9.5 million more subscribers to the Disney+ total while they are paid an extra undisclosed “wholesale” price for those subscriptions from Charter.

Disney is seemingly attempting to stem the flood of users who are jumping ship by adding new ones. But when the price increases take effect next month, they could lose more, or they will get what they want, and customers will downgrade to the Disney+ with ads or the Disney+ / Hulu with ads bundle for $7.99 and $9.99, respectively. This would give Disney the subscriber numbers and revenue while allowing them to double dip with advertiser money.

If they can offset some of the subscriber losses and boost revenue, they might be able to appease the investors somewhat. But it sounds like they need every subscriber they can get and fast. Disney’s fiscal year ends on September 30, 2023.

What do you think? Comment and let us know!

Source: Orange County Register