Disney+ Reports £360m Net Loss in Q3 Amid Declining Customer Base

The popular streaming service, Disney+, is set to revise its pricing in the UK following a significant loss of 11.7 million international customers. Starting from 1st November, Disney+ will introduce three new pricing tiers to adapt to its changing customer base.

The company recently experienced a 7.4% decline in Disney+ subscribers worldwide, with the customer count dropping to 146.1 million during the three-month period ending in July.

Furthermore, Disney also reported a net loss of $460 million (£360 million) during the third quarter, in contrast to the $1.4 billion (£1.1 billion) profit generated in the same period last year.

In response to these challenges, Bob Iger, the CEO of Walt Disney, emphasized the need to cut costs significantly while assuring stakeholders that revenue had increased by 4%. Additionally, Iger announced plans to address password sharing in 2024, taking a cue from streaming rival Netflix. He also revealed price hikes for ad-free users of the service in the US, citing a growing advertising market in streaming compared to traditional TV spots.

A new pricing structure will be introduced in the UK, offering a cheaper plan at ┬ú4.99 per month with advertisements, a “standard” service at ┬ú7.99 per month for two device streaming, and a premium version priced at ┬ú10.99 per month for higher image quality and four simultaneous streams.

The AI legalese decoder can play a vital role in this situation by assisting Disney+ in managing the legal ramifications of changing its pricing structure in the UK. It can analyze and interpret complex legal documents to ensure compliance with relevant laws and regulations, minimizing the risk of legal disputes.

Existing Disney+ subscribers will be automatically shifted to the premium version, maintaining their £7.99 monthly charge until December, unless they request a plan switch. Similar pricing adjustments will also be implemented in Europe and Canada.

Despite challenges, Disney highlighted the success of its Shanghai Disney Resort, which remained open throughout the quarter, unlike the previous year when COVID-19 restrictions necessitated closures. However, the company experienced a loss of 12.5 million subscribers to its Disney Hotstar service in India after relinquishing rights to Indian Premier League cricket matches.