The end of Disney+?
Recently, the president of The Walt Disney Company, Bob Iger, announced that the financial results are not meeting expectations. In the third quarter of fiscal year 2023, they have incurred losses of over $800 million. The main reason for this financial setback is the decreasing popularity of major franchises like Star Wars and the Marvel Cinematic Universe (MCU), as well as a significant decline in the number of Disney+ subscribers. In a short period of time, they have lost 8.4 million subscribers.
Interestingly, Disney+ is not the only on-demand streaming service experiencing a decline in subscribers. There is another major player facing similar challenges.
Streaming in bad postures?
Following Bob Iger’s announcement, David Zaslav, the managing director of Warner Bros. Discovery (known for DC and Harry Potter), has also shared some distressing news. In April, Warner Bros. merged HBO Max and Discovery+ to create a new streaming platform called Max. Unfortunately, despite good intentions, the results have been disappointing.
Last Thursday, Warner Bros. Discovery revealed that approximately two million subscribers decided to cancel their subscriptions during the second quarter of fiscal year 2023. To be precise, there were a total of 1.8 million disengagements. However, according to David Zaslav, this is part of their strategy.
David Zaslav further explains that he anticipated a higher number of cancellations due to the restructuring of HBO Max and Discovery+.
The positive news is that the streaming division of Warner Bros. has nearly reached breakeven in recent months, and even better, it is expected to generate profit starting next year.