The streaming service Disney Plus shed a staggering 700,000 subscribers in the final three months of 2024, the entertainment giant has confirmed.
Amid a climate of rapid streaming service price increases, Disney was one of the worst offenders last summer, adding $2 to the price of its ad-supported and ad-free services in the United States. That was the latest in a series of consecutive price hikes.
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Couple that with the imposition of a crackdown on password sharing that began late last year and the message from a small group of subscribers is clear with close to three-quarter-of-a-million reaching for the cancel subscription button.
However, there were not enough rebels against the empire to put much of a dent in Disney+ subscriber numbers worldwide which still sit at 124.6 million. And it hadn’t a dent in Disney’s coffers either. Quite the opposite, in fact.
For Disney, the move has been successful. CEO Bob Iger was this week able to claim the victory of three straight quarters of profitability for the streaming service (via Variety). Profit over growth is now the aim, but it’s come at a significant cost for subscribers.
The price hikes, the ads (introduced in late 2023), and the crackdown on sharing passwords has accompanied a trimming of the original content output.
The company is now spending far less on Star Wars and MCU content marketed exclusively for the platform. And, although few of those hit the heights associated with those franchises, it still formed much of the incentive for fans to pay for Disney+.
Some would say fewer shows and a focus on greater quality is actually a good thing. However, there’s certainly less incentive to subscribe year round, because less of the content remains exclusively behind the Disney+ paywall.
No relief from price increases
That Disney has been able to introduce price hikes and ads, cut content output, and crackdown on people sharing passwords and turn a profit with Disney+ doesn’t bode well for us as consumers.
700,000 said “enough is enough” and ditched Disney+, but it’s not enough to discourage this strategy if only half half-a-percent of users cancel the service.
It only serves to validate Disney’s strategy. The gambit worked. It’ll keep raising prices until the equation flips again. As will the rest of the streaming players who’re becoming increasingly emboldened by what feels like annual price increases.
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