Disney’s Q3 Reports Show Losses and Price Hikes, Frustrating Subscribers and Raising Questions
Disney’s financial woes continue as the company reports losses and implements price hikes for its streaming services. Despite ongoing struggles with box-office successes, Disney’s recent Q3 reports reveal a loss of $460 million. However, the company is determined to turn things around.
To recoup some of these losses, Disney has taken a page out of Netflix’s book and raised the prices of its Disney Plus and Hulu subscriptions. This move comes after Disney Plus lost 4 million subscribers in Q2 due to the streaming rights loss of the Indian Premiere League cricket matches. With the new price increases, Disney may face a similar subscriber decline.
While subscribers were already disheartened by the losses, they were further disappointed by the absence of certain titles from Disney’s Q3 release slate. Notably missing were the first Deadpool film under Disney and the Echo series. Speculation arises as to whether these projects are delayed, especially with ongoing strikes in the industry.
In response to these setbacks, CEO Bob Iger is adopting a more conciliatory approach to address the strikes and prevent further delays. However, subscribers are less forgiving of the price hikes. Disney Plus’ ad-free subscription will increase from $10.99 to $13.99, while Hulu’s ad-free subscription will jump from $14.99 to $17.99. Many users took to social media to express their frustration, with some threatening to cancel their subscriptions. They cite the significant increase in Disney Plus’ price since its launch in 2019 and question whether the content justifies the higher cost.
To compound matters, Disney plans to crack down on password sharing in 2024, following Netflix’s success with a similar measure. The aim is to encourage subscribers to transition to ad-supported plans or bundle their subscriptions. The ad-supported plans for both Disney Plus and Hulu will remain at $7.99 each, with a bundle priced at $9.99. Additionally, a new ad-free bundle combining Hulu and Disney Plus has been introduced for $19.99 to prepare for the upcoming merger of the two streaming services.
The decision to raise prices on premium subscription tiers is part of Disney’s strategy to generate ad revenue and bring back a cable-like revenue model. However, subscribers feel the recent price hikes are unjustified, given Disney’s underwhelming content releases.
While the strikes in the industry may impact Disney’s release schedule, it is uncertain whether the absence of Deadpool 3 and Echo from the Q3 slate indicates a delay. Despite Disney’s expressed commitment to resolving the strikes, critics question the genuineness of these statements. The proposed AI proposal for using background actors’ likenesses perpetually has not been received well by the creative community.
In conclusion, Disney’s Q3 reports show a substantial loss, leading to price hikes that have frustrated subscribers. The absence of certain titles from the release slate further raises questions about delays and the impact of industry strikes. Disney aims to recover through improved content and pricing strategies, but it remains to be seen whether these measures will be enough to satisfy both subscribers and the creative community.
