Disney's Q1 2025 Earnings Report: A Shift in Streaming Growth
Disney recently released its earnings report for the first quarter of 2025, covering the period from October to December. the data reveals that growth in its streaming service is beginning to slow down considerably.
Subscriber Losses and Future Projections
The report indicates a loss of 700,000 subscribers for Disney+. Analysts predict further declines throughout most of 2025. This drop is likely due to increased subscription prices and stricter rules on password sharing. In contrast, Hulu experienced growth, adding 1.6 million subscribers last year, bringing its total to 53.6 million users.
Currently, Disney+ has about 124.6 million subscribers, a slight decrease from the previous year's count of 125.3 million. Together with Hulu, Disney’s streaming services now have a combined total of approximately 178 million subscriptions—an increase of around 900,000 compared to last year.Financial Performance Amid challenges
Despite losing subscribers, Disney exceeded financial expectations for this quarter. The company reported earnings per share at $1.76 USD ($2.52 CAD), surpassing analyst predictions of $1.43 USD ($2.05 CAD). Additionally, Disney parks performed well financially but faced challenges due to Hurricane Helene and Hurricane milton impacting operations.
Unlike many other streaming companies that rely solely on media revenue, Disney benefits from various business ventures outside entertainment that help support its streaming services financially.
Strategic Changes Under Leadership
When Bob Iger returned as CEO in late 2022, he aimed to enhance the availability and quality of Disney’s streaming offerings by the end of 2024—a goal they seem to have achieved successfully so far this year.
Iger also focused on reducing content spending compared to previous years as part of his strategy for improving overall content quality across platforms.
while subscriber numbers are declining for Disney+, their financial performance remains strong thanks in part to diversified revenue streams and strategic leadership decisions aimed at enhancing service quality moving forward.
