On Wednesday, Disney unveiled its financial results for the first quarter of the fiscal year, and the numbers exceeded Wall Street’s expectations for both revenue and earnings per share. However, the excitement came with a note of caution as the report revealed early signs of expected subscriber losses for Disney+.
In the streaming arena, Disney+ achieved profitability yet again, although it faced a slight dip of 1% in its subscriber count. On the bright side, while domestic subscriptions nudged up by about 1%, the international market faced a more significant challenge, witnessing a decline of around 2%. Currently, Disney+ boasts a total of 124.6 million paid subscribers, down from the 125.3 million at the end of the previous fiscal fourth quarter.
In contrast, Hulu is basking in the glow of rising popularity, with total subscriptions climbing 3% to hit 53.6 million during the same timeframe.
Looking ahead, Disney is tempering investor enthusiasm with a warning: they anticipate a “modest decline” in Disney+ subscribers in the upcoming second quarter, hinting that the road to sustained growth may be a bit bumpy.
