New drop in the number of Disney + subscribers, victim of the Indian market

2023-08-10 00:44:14

Disney saw the number of subscribers to its Disney + streaming platform decline for the third consecutive quarter, but promised an upturn during the summer, when the American group faces a historic strike by screenwriters and actors.

The streaming service fell from 157.8 million at the end of March to 146.1 million at the end of June, mainly due to the Indian market, following the loss of the rights to broadcast the national cricket championship.

In all, the entertainment giant achieved a turnover up slightly but slightly below analysts’ expectations, at 22.3 billion dollars over the period, according to its results press release published on Wednesday.

From late September to late June, Disney+ lost 18 million subscribers altogether. The fall in the spring is mainly linked to a 24% drop between March and June in India, where the version of the service, called Hotstar, weighs almost a third of the world total.

But the platform also saw a slight decline of 1% in North America, the second consecutive.

However, it seeks to remain positive, assuring to expect a rebound in the number of subscribers during the current quarter, both in its domestic market and internationally.

In financial terms, the streaming activity remains loss-making, but it continued to reduce its operating losses over the quarter, to 512 million dollars instead of 1 billion last year at the same period.

Disney also saw its revenue for films and programs sold to cinemas and television stations decrease, to $6.7 billion.

Only revenue from amusement parks, cruises and related products increased substantially, by 13%, to $8.3 billion. The activity generated an operating profit of 2.4 billion dollars (+11%).

“Unrealistic”

Under the leadership of boss Bob Iger, the Enchanted Kingdom has undertaken to save money this year, in particular by eliminating 7,000 jobs and reducing content production.

Recalled to the helm at the end of 2022, Mr. Iger, 72, had previously led the company from 2005 to 2020. The group’s board of directors voted unanimously in July to extend his contract until the end of 2026.

But the iconic leader has waned in popularity in recent months. He faces a historic Hollywood strike: the actors joined the screenwriters in mid-July to demand an increase in their remuneration, at half mast in the era of streaming.

They also want to obtain guarantees on the use of artificial intelligence (AI), to prevent studios from using it to generate scripts or clone their voice and image.

“Unrealistic” requirements, according to Bob Iger, shouted down in demonstrations from Los Angeles to New York.

“Nothing is more important to this company than its relationship with the creative community, actors, writers, directors and producers,” he said on a conference call Wednesday. “I have a deep respect for all those who are vital to the extraordinary creative engine that powers this group and our industry.”

In Florida, Disney is in the midst of a battle with Governor Ron DeSantis. This personality of the American hard right, fighting against a supposed “woke” culture, ended in February the special status that the company had enjoyed in his state since the 1960s.

In May, the Californian group gave up building a nearly $900 million campus near its Florida amusement park.