BURBANK (CNS) - The Disney+ streaming service lost 4 million subscribers during the second quarter of the fiscal year, but overall losses attributed to the company's direct-to-consumer operations fell by more than $200 million compared to the same quarter a year ago, the Walt Disney Co. reported today.
According to the Burbank-based entertainment giant, the number of Disney+ subscribers fell to 157.8 million in the quarter ending April 1, down from 161.8 million in the prior quarter. The biggest drop was attributed to the Disney+ Hotstar service, which is offered in India and Southeast Asia. It was the second straight quarter of global subscription declines for Disney+, which saw steady increases each quarter since its introduction in 2019.
Despite the decline, Disney reported a 12% year-over-year increase in revenues from its direct-to-consumer business, helping reduce the segment's operating losses from $887 million in the second quarter of last year to $659 million in this year's second quarter.
``The improvement at Disney+ was due to higher subscription revenue and a decrease in marketing costs, partially offset by higher programming and production costs and, to a lesser extent, increased technology costs,'' according to the company. Disney reported a 2% increase in subscribers to its ESPN+ service during the second quarter, reaching 25.3 million, while Hulu subscriptions rose slightly from 48 million the prior quarter to 48.2 million in the second quarter.
``We're pleased with our accomplishments this quarter, including the improved financial performance of our streaming business, which reflect the strategic changes we've been making throughout the company to realign Disney for sustained growth and success,'' Disney CEO Bob Iger said in a statement. ``From movies to television, to sports, news, and our theme parks, we continue to deliver for consumers, while establishing a more efficient, coordinated, and streamlined approach to our operations.'' Disney reported overall Q2 revenues of $21.8 billion, up 13% from the same quarter a year ago. Adjusted earnings per share were reported at 93 cents, down from $1.08 in the same quarter a year ago.