Over the last few years, streaming services have risen in popularity due to the massive amount of content they offer, such as movies, on-demand shows, and now even live television, all contained on a single platform.
Because Disney is an expert in multimedia, the company saw the huge potential and massive monetary gains that entering the streaming service industry could bring to its business and was quick to develop its own service.
In 2019, Disney launched Disney+ in the U.S., and since then, it has grown consistently, constantly gaining subscribers. Its quick success and fans’ demand for the service later pushed it to expand to other countries, gradually increasing its awareness and gaining even more subscribers.
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However, after publishing its latest earnings release, Disney revealed Disney+ had lost subscribers for the first time after multiple years of growth, reporting a 1% decline in subscribers compared to the previous quarter.
Disney+ suffers subscriber declines for the first time since its inception
As shocking as this may sound to some, Disney (DIS) had already predicted this slowdown last quarter, warning investors about an upcoming slight decline in streaming subscribers. During this current quarter, the company provided yet another warning about more upcoming declines.
Disney+’s high demand and multiple investments to meet consumers’ needs and make the streaming service more desirable amid growing competition led to a spike in subscription costs.
Although this is a way for Disney to pay off its huge streaming investments, the price hikes also put the company at risk of losing subscribers who can no longer afford them.
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Last October, Disney+ raised prices for its ad-supported and ad-free tiers by $2 per month. It also increased its Disney Duo Basic (Disney+ and Hulu with ads) subscription by $1 monthly, and both its Disney Bundle Trio Basic (Disney+, ad-supported Hulu, and ESPN+) and Premium (Disney+, ad-free Hulu, and ESPN+) went up $2 per month.
Hulu subscribers also suffered from the price hikes, as Disney increased the monthly prices for Hulu’s ad-supported tier by $2 and its ad-free tier by $1 and raised the monthly prices for the Hulu and Live TV bundle ad-supported and ad-free tiers by $6.
Disney offers a limited-time deal to regain streaming subscribers
Only a few months after launching Disney+ in the U.S., Hulu subscribers were allowed access to the new streaming platform by purchasing an add-on for only $2 extra per month.
However, in October of last year, the add-on perk for existing Hulu customers was discontinued and replaced with a Disney Bundle Duo plan at no additional cost for those who had already purchased the add-on.
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To give customers a break and regain the thousands of subscribers lost due to its price increases, Disney is offering customers one of the best discounts yet, which seems almost like an apology for the multiple hikes.
Customers can now get Disney+ and Hulu Bundle Basic for $2.99 per month for four months, saving customers 72%. Once the time period is up, the Disney+ and Hulu Bundle Basic will auto-renew to the original $10.99 monthly plan unless canceled before the deadline.
This limited-time offer will be available for purchase until the end of March and is only valid for new and eligible returning Disney+, Hulu, and/or ESPN+ subscribers.
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