Disney+ reports a fall in sales; subscription prices to increase?
Disney+ is increasing prices and expanding adverts on its streaming service as it struggles to resurrect the business.
The entertainment firm plans to raise the price of its ad-free streaming service in the US in autumn and will release Disney+ with advertisements in the UK, Europe and Canada in November.
The company faces various problems, including lacklustre film performance and a sharp decline in television advertising sales. Even its parks show indications of strain.
Disney said that income at the division increased 13%, raised by a rebound in China.
But the firm said attendance had fallen in the three months ending 1 July at its amusement park in Florida, where the firm has been feuding with Governor Ron DeSantis, who has spearheaded attacks in the US on the company as too “woke”.
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Overall earnings at the business increased by 4% year-on-year in the three months ended 1 July, as it posted a loss of $460m (£361m) compared to a $1.4bn gain in the same period last year.
Disney chief executive Bob Iger said the company had “work to do”.
“I’m incredibly confident in Disney’s long-term trajectory,” he continued on Wednesday, as the company provided investors with a quarterly update.
Mr Iger admitted that the performance of some recent movies – which had a new live-action Little Mermaid and Guardians of the Galaxy Vol 3 – had been “disappointing”.
