Disney+ Subscriptions Collapse As Company Takes Another Hit
The Walt Disney Company announced earnings after hours Wednesday afternoon, and yet again the results were disappointing.
While there were positives, mainly that Disney's spending would be lower in upcoming periods and that they'd resume paying a divided, underlying metrics were once again concerning for the entertainment giant.
The parks division, once seen as immune to declines, has been hit with declining demand. And the company announced that total revenue had missed expectations at $22.33 billion compared to $22.51.
But the biggest news is that Disney+ took a massive hit. The company announced that they have 146.1 million subscribers, a 7.4% decline from last quarter. Analyst expectations had expected around 154.8 million.
While some of the decline can be attributed to international locations, even in the U.S. and Canada, Disney lost substantial numbers of subscribers.
The entertainment division also missed estimates, largely due to dramatic box office underperformance from the film studio. The Little Mermaid missed expectations, and Elemental was a disastrous flop after including Pixar's first "non-binary" character.
That won't get any better considering the dismal performance of Haunted Mansion, a new live action film based on the Disneyland ride. Haunted Mansion has accumulated just over $60 million at the box office worldwide, despite likely needing to gross $450 million to break even.
READ: ‘HAUNTED MANSION’ MOVIE LATEST FINANCIAL DISASTER FOR DISNEY
Wagons from the Haunted Mansion ride are displayed on the red carpet for the world premiere of Disney's "Haunted Mansion" at the Hyperion Theatre inside the California Adventure Park in Anaheim, California, on July 15, 2023. (Photo by MICHAEL TRAN/AFP via Getty Images)
Disney Continues To Alienate Customers, Shocked When They Stop Buying Products
Disney's stock rebounded slightly thanks to the dividend announcement, but after peaking at nearly $200 per share in 2021, the company now trades around $87.
While the S&P 500 is up nearly 17% year-to-date, Disney's down around 2%.
And now they're announcing more streaming losses, seeing declining parks demand, and releasing box office flop after box office flop.
Things are going well!
Instead of focusing on appealing to the widest possible customer base, Disney's instead recently prioritized progressive political activism. From Strange World to Lightyear to Elemental, political messaging has become a core tenet of the once well-liked entertainment company.
While it's unclear how much of their financial struggles can be attributed to conservative apathy, it's certainly not zero. Many consumers have decided to avoid supporting companies who openly loathe them, a position Disney has frequently taken.
They also picked an unnecessary fight with Florida Governor Ron DeSantis, a costly mistake that's given rise to lawsuits and removed their control over the Walt Disney World property.
It's been a series of unforced errors, and consumers have taken notice.
ESPN Decision Shows Vulnerability
Their recent decision to sign a partnership between ESPN and Penn Entertainment indicates that the company realizes how dire things are at the once dominant sports network.
READ: DAVE PORTNOY OWNS BARSTOOL SPORTS, AGAIN, AFTER PENN DIVESTS AND SIGNS PARTNERSHIP DEAL WITH ESPN
Disney is too big to fail, and could still correct course and revert to the company they used to be. But progressive institutions and corporations rarely recover, as woke employees demand unending alliance to their ideology.
These results aren't as bad as they could have been, but they yet again signal that Disney's mistakes are coming back to bite them. The only question now is how much worse does it get.