Disney shares plummet 8% as subscribers abandon its streaming service in their droves
Walt Disney shares tumbled after its streaming service lost 4m subscribers in the first three months of 2023.
In an update on Wall Street, the entertainment giant behind the Pixar, Star Wars and Marvel films said the Disney+ service had 158m paying customers at the end of March – 4m fewer than at the start of January, on the back of the loss of 2.4m subscribers in the previous quarter.
Analysts had expected it to add more than 1m customers this year.
Tuning out: Disney had 158m paying customers at the end of March – 4m fewer than at the start of January
This sent shares down 8 per cent, wiping £12billion off the value of the company, and underlined the scale of the challenge facing boss Bob Iger.
He has returned as chief executive for two years and is under pressure to stop streaming services bleeding cash.
Having put up subscriptions, its streaming losses narrowed to £527million between January and March, which was a £320million improvement from the prior quarter.
But the drop in subscribers has fanned worries that the media and entertainment company’s success in stemming losses may come at the cost of growth.
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