Disney’s traditional television business continues to decline with operating income at so-called linear networks dropping sharply by 11 percent to $1.1 billion in the last financial quarter.
Subscribers for the company’s flagship streaming video service, Disney+, slipped one percent from the prior quarter to 124.6 million, Reuters reports.
The company had warned of a drop in subscribers because of a price increase that took effect in October. It also forecast a modest decline in Disney+ subscribers in the second quarter, compared to the first.
Advertisers are also hesitant to engage with Disney+.
As Breitbart News reported, the streaming service is reportedly facing an exodus of advertisers from its ad-supported tier after subscriptions failed to meet expectations last year and several high-profile Star Wars and other Lucasfilm series flopped with viewers.
Launched to drive more revenue into Disney’s coffers, the ad-supported tier of Disney+ is struggling to hold onto advertisers who have become disenchanted with the platform, according to a recent report from an anonymous advertising professional known as “Kiss My Grits” (“KMG”), who was featured on the Valliant Renegade YouTube channel.
“The ad tier subscription numbers are nowhere near what they assumed they were going to get,” KMG said in the video.
KMG also alleged Disney+ has failed to deliver the promised number of ad impressions to certain advertisers.
This is, also, in stark contrast to Netflix, which continued to see massive subscriber growth after raising its prices.
