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Netflix has extended its lead as the supreme streaming service by subscribers, with Disney+ reporting the loss of 1.3 million customers in the final quarter of 2023 after adding a $3 price hike onto its ad-free service last October.
Although neither platform is a stranger to raising prices (Netflix also made its 3rd price hike in 4 years last October), Disney’s move came alongside mounting pressure for video-viewing platforms to compete with the world’s biggest streamer.
Disney+ and other major streaming sites including Paramount and Warner Bros Discovery — now the sprawling parent company of Discovery+, legacy HBO, and streaming service Max — are still reconciling losses from acquisitions, expensive content deals, and discounted sign-ups.
While Disney+ is now reaching fewer screens than before, the higher subscription prices did result in narrowing losses by $300m, leaving the streamer “on track” to meet their $7.5bn annualized savings target — and finally reach profitability — by the end of 2024.
What this means: Some have declared the end of the streaming wars, with Netflix the winner. For viewers, expect a continued crackdown on password-sharing, this time by Disney+, as the company looks to get back into growth mode.
