BURBANK, Calif.—Disney reported declines in its flagship Disney+ streaming service in Q2 of its 2023 fiscal year ending April 1, 2023 while reducing the losses from its streaming services.
Revenue slightly beat Wall Street expectations but earnings per share slightly missed. The stock down by 8.2% by 11:25 a.m. ET on May 11.
The quarter marked the second straight quarter of sub losses at Disney+.
Disney+ subs fell by 4 million in the quarter ending April 1, 2023 to 157.8 million worldwide, while domestic U.S. & Canada Disney+ subs declined to 46.3 million from 46.6 million at the end of 2022.
Meanwhile Hulu subscribers grew to 48.2 million in the quarter ending April 1, 2023, up from 48 million at the end of 2022. Hulu Live TV +SVOD fell from 4.5 million at the end of 2022 to 4.4 million in April 1, 2023.
ESPN+ subs grew to 25.3 million by April 1, 2023 from 24.9 million at the end of 2022.
The company did make good on its promise to reduce losses from its direct-to-consumer streaming efforts.
Direct-to-consumer revenue grew by 12% from a year earlier to $5.514 billion while operating losses fell to $659 million in the quarter ending April 1, 2023, a 26% decline from the $887 million operating loss reported a year earlier.
“We’re pleased with our accomplishments this quarter, including the improved financial performance of our streaming business, which reflect the strategic changes we’ve been making throughout the company to realign Disney for sustained growth and success,” said Robert A. Iger, CEO, The Walt Disney Company. “From movies to television, to sports, news, and our theme parks, we continue to deliver for consumers, while establishing a more efficient, coordinated, and streamlined approach to our operations.”
