2025 might not be a good start for Disney+ after it experienced its first-ever subscriber decline following a significant price increase in October 2024.
Between October and December 2024, the first quarter of Walt Disney Company’s fiscal year 2025, the streamer lost a whopping 700,000 subscribers.
Excluding Disney+ Hostar, the affordable Disney+ service in India, the service has reduced its global paid memberships to 124.6 million.
This downturn came three months after Disney raised prices across most streaming plans and introduced stricter password-sharing policies.
Price Increases and Plan Changes Cause Subscription Decline for Disney+
In August 2024, Disney announced sweeping price hikes, which took effect in October of the same year.
The Disney+ ad-supported plan increased by $2 to $9.99 per month, while the ad-free Disney+ Premium also saw a $2 hike, raising the monthly cost to $15.99.
Hulu with ads rose from $7.99 to $9.99 per month, and its ad-free tier increased by $1 to $18.99. ESPN+ also saw a $1 price increase, bringing its monthly subscription to $11.99.
The steepest hike affected Hulu + Live TV, which jumped by $6, bringing the base plan to a hefty $82.99 per month.
The only unchanged plans were the Disney+/Hulu/Max bundle, which remains priced between $16.99 and $29.99 per month, and the premium Disney+/Hulu ad-free bundle, which holds steady at $19.99 per month.
Disney’s Streaming Business Remains Profitable
Despite a significant decline, Disney+ remains profitable. While ESPN+ lost 700,000 subscribers during the period, Hulu gained 1.6 million, bringing its total to 53.6 million.
As a result, Disney’s streaming division remained profitable for the third consecutive quarter. The drop in subscribers was neither alarming nor unexpected.
In fact, Disney had already anticipated subscriber losses for Q1 2025 and projected a “modest decline” throughout the year.
The decrease was far smaller than the 4.4 million subscribers Disney+ added between June and September 2024. Analysts attributed the decline to price hikes and the expiration of certain promotions.
Disney’s Net Income Increase
Although Disney+ lost subscribers, the company's net income still rose by approximately 23%, reaching $2.64 billion compared to $2.15 billion in the same quarter last year.
Additionally, revenue grew by 4.8%, increasing from $23.55 billion to $24.69 billion.
“Our results this quarter demonstrate Disney’s creative and financial strength as we advanced the strategic initiatives set in motion over the past two years,” said CEO Robert Iger in a statement.
Thanks in part to its box office successes—Inside Out 2, Deadpool & Wolverine, and Moana 2 were the top three films of 2024—Disney continued to thrive.
Moana 2 surpassed $1 billion in global earnings, Deadpool & Wolverine grossed $1.3 billion, and Inside Out 2 led the pack with an impressive $1.699 billion.
“In fiscal Q1 we saw outstanding box office performance from our studios, which had the top three movies of 2024. … Overall, this quarter proved to be a strong start to the fiscal year, and we remain confident in our strategy for continued growth,” Iger continued.
Disney ranks as the No. 1 media company in total television usage. Given its dominance, the company is expected to maintain its success despite occasional setbacks.