Inside Disney’s Q2 2023: Rising Revenues, Slipping Subscriptions

Disney recently announced the financial results for the second quarter of fiscal year 2023, revealing a revenue of $21.815 billion, a 13% increase compared to the same period last year. Cable television income, however, experienced a 35% decline, while streaming services, including Disney+, reported a profit increase of 26%, despite the overall losses amounting to $659 million.

Nevertheless, compared to the losses of $887 million from the same period last year, the results indicate the efficacy of the prior strategy to raise subscription prices. Consequently, Disney plans to further increase subscription rates, although no specific implementation timeline has been disclosed.

Observing the decrease in overall Disney+ subscriptions in the last quarter due to the price increase, it’s clear that Disney must be judicious in pricing its services. Despite potential short-term profits from a price increase, a gradual loss of subscribers, in the long run, could result in more significant losses.

On another note, Disney CEO Bob Iger announced the continuation of individual subscription plans for Disney+, Hulu, and ESPN+. However, a consolidated subscription package encompassing all services is set to be launched by the end of this year. This initiative provides an additional option for users desiring access to all content simultaneously, with the aim of expanding the user base and revenue opportunities. This would also cater to the advertising industry by attracting more advertisers to subscribe to these plans.