The Walt Disney Company reported first-quarter earnings that exceeded analyst expectations, yet revealed a loss of 700,000 subscribers for its Disney+ service, the first drop since its launch. While streaming services like Disney+ and ESPN+ faced subscriber declines, total Hulu subscriptions increased. The losses were attributed to a recent price increase. Analyst Jesse Cohen pointed out that this decline signals potential market saturation and challenges with Disney's pricing strategy. Despite losses in streaming, Disney's parks and studios showed strong performance, although domestic parks struggled due to extreme weather conditions.
"Disney's earnings beat underscores the success of its cost-cutting initiatives and resilient performance in parks and studios, offsetting headwinds in streaming."
"The surprising loss of Disney+ subscribers - the first decline since its 2019 launch - raises red flags about saturation in a crowded market and the trade-offs of its pricing strategy."
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