Disney stock drops 9% on streaming subscriber loss report.

On May 12th, 2023, Disney stock dropped 9% after a report was released detailing a significant loss in streaming subscribers. The report revealed that Disney+ had lost nearly 5 million subscribers in the past quarter, marking the first decline in the streaming service's history.


This news comes as a surprise to many, as Disney+ has been a major player in the streaming wars since its launch in 2019. With a massive library of content from popular franchises like Star Wars and Marvel, as well as beloved classics like The Lion King and Beauty and the Beast, the service quickly gained a large following.

However, competition in the streaming market has been fierce, with new players like HBO Max and Paramount+ entering the game. Additionally, the ongoing pandemic has caused many consumers to tighten their budgets, leading some to cut back on subscription services.

Despite the loss in subscribers, Disney CEO Bob Chapek remains optimistic about the company's future. In a statement, he said, "While we are disappointed to see a decline in subscribers, we remain committed to delivering high-quality content to our viewers and believe that our upcoming releases will continue to drive growth."

Indeed, Disney has a number of highly-anticipated projects in the works, including new entries in the Star Wars and Marvel franchises, as well as a live-action remake of The Little Mermaid. These releases could potentially draw in new subscribers and help the company regain its footing in the streaming market.

Overall, the decline in Disney+ subscribers is a setback for the company, but it's not necessarily a sign of long-term trouble. With a strong lineup of content on the horizon, as well as the continued success of Disney's other business ventures, such as theme parks and merchandise sales, the company is likely to bounce back from this setback in due time.