The entertainment giant spent much of the past decade turning its entire company into a factory of social justice, incorporating left-wing political messages into as many pieces of content as it could. Sometimes openly.
It's led to a string of projects suffering financial losses in the company's entertainment division, from Pixar projects to Disney animation movies, to "The Acolyte," a Star Wars-associated show on Disney+ that was a dismal financial and critical failure made with the express purpose of being woke.
And it's quite obviously hurt the once-invincible Disney. In March 2021, Disney's share price was $190. Five years later, it's $110. In a period where the S&P+ is up 52%, Disney is down 42%. Underperforming the market by 94% is not ideal. The news isn't getting much better.
Disney announced in its recent quarterly update that Disney+ lost 700,000 subscribers globally in the final three months of 2024, their first quarter of fiscal 2025. While most of the losses were international accounts, it highlights some deeper underlying issues.
Disney+ Has Few Reasons To Keep People Subscribed
What companies like Disney are learning about their streaming packages is that their customers are highly elastic. Meaning that changes in cost, declining quality of product, or the end of bundle packages can lead to massive declines in subscriber numbers.
And Disney+ does not have much in the way of must-see TV. One look at their page of original shows and series shows why.
It's rough out there, as the company's prioritized anything and everything over what made it the family entertainment giant that it became. "Iwaju." "People and Places: Nai Nai & Wai Po." "Skeleton Key." "Madu." Heard of any of these?
With few recent success stories to point to, there's also precious little reason for subscribers to join up. Who, for example, is paying $16 per month to watch an ad-free version of "Haunted Mansion?"
At some point, consumers will realize that it's not worth paying Disney's subscription prices to watch animated classics when they could buy them for less. 700,000 might not be a big number now, but a few more quarters like this, and it certainly will be.
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