Disney shares slip as company loses streaming subscribers

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Walt Disney Co reduced streaming losses by $400 million from the prior quarter but also shed subscribers, the company reported on Wednesday as earnings landed in line with Wall Street expectations.

reduced streaming losses by $400 million from the prior quarter but also shed subscribers, the company reported on Wednesday as earnings landed in line with Wall Street expectations.The company plans to expand its streaming offerings by the end of the year with a new app that combines Disney+ and Hulu, Chief Executive Bob Iger said.

A price increase and reduced marketing expenses helped improve the performance of the streaming unit, which ended the January-through-March quarter with an operating loss of $659 million. In the prior quarter, the division lost $1.1 billion. "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," Chief Executive Bob Iger said in a statement.

Most of the defections came from the Disney+ Hotstar offering in India after it lost streaming rights to Indian Premier League cricket matches. Disney also shed 300,000 customers in the United States and Canada, where it raised prices last December.Chief Financial Officer Christine McCarthy had warned in February that the company expected "modestly higher" cancellations because of the price increase.

 

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Disney Earnings: Streaming Losses Shrink and ARPU Rises, Disney+ Subscribers Fall to 157.8MHigher prices did not seem to materially impact the Disney+ domestic subscriber base even as the service lost subs due to international arm Disney+ Hotstar.
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