Disney Plus drops four million subscribers as fresh layoffs begin

New Delhi: Entertainment giant The Walt Disney Company’s flagship streaming service Disney Plus lost four million subscribers in the second quarter ended April 1, as the company entered its third round of layoffs. In the second quarter of FY2023, the company reported 157.8 million customers as compared to 161.8 million in the previous quarter. The major reason behind the decline is Disney Plus Hotstar, which lost eight percent of its subscribers. Its subscriber base is set to grow to 52.9 million in the second quarter from 57.5 million in the first quarter of 2023. “Disney Plus Hotstar’s average monthly revenue per subscriber decreased from $0.74 to $0.59 due to lower advertising revenue,” the company said in a statement. The decline in Indian subscribers is mainly because the platform did not hold the streaming rights of the Indian Premier Cricket (IPL) League.

Overall for the company, revenue for the quarter and six months grew by 13 percent and 10 percent, respectively. Robert Iger, CEO of The Walt Disney Company, said, “We are pleased with our achievements this quarter, including the improved financial performance of our streaming business, which reflects our company-wide commitment to reposition Disney for continued growth and success. making strategic changes. Disney is planning to increase the number of its employees to seven thousand. This will cut the company’s cost by $ 5.5 billion. Disney Parks, Experiences and Products are likely to be affected by the new round of job cuts, along with Disney Entertainment and ESPN. Iger said, “I don’t take this decision lightly. I have great respect and admiration for the talent and dedication of our employees around the world, and I am mindful of the personal impact of these changes.”