Disney is expected to fall tens of millions short of its 2024 goal for Disney+ and Hulu subscribers in the aftermath of big price increases for their streaming services and growing public anger over their woke policies.
In March of 2022, Disney's political demands in Florida that children as young as the third grade be taught sexual matters sparked a national furor among conservatives, with boycotts against the entertainment giants services like Disney+ and Hulu.
Last month stock analysts noted the company's market cap had fallen from $350.09 billion on March 22, 2022, to $154.04 billion — a decline of $196.05 billion — or a 56% drop.
Bloomberg News reported on the projected shortfall for Disney Thursday night.
Disney, under then CEO Bob Chapek, in August 2022 set a target of 215 million to 245 million subscribers by the end of fiscal year 2024.
Disney, however, finished Q3 with 146.1 million Disney+ subscribers.
The media giant has also taken a hit from decreasing demand for Disney+ in India after it failed to win the streaming rights for cricket, according to Bloomberg.
Without acknowledging the reported shortfall, current CEO Bob Iger said in February that Disney would cease providing subscriber forecasts.
So instead, Disney has shifted its focus to profitability, according to Bloomberg.
To accomplish this Disney is dramatically increasing the price consumers have to pay for Disney+ and Hulu.
Disney increased the cost of ad-free Disney by 27% to $14 monthly.
Ad-free Hulu, which Disney owns the controlling interest, will see a price hike of about 20% or $3 per month. The move makes Hulu more expensive than the comparative package at Netflix.
Bloomberg also reported Disney is looking to dump the ABC television network.
Disney had talks with Nexstar Media Group, owner of 200 local TV stations in 116 markets. But the New York Post reported any deal there is far off, given that "everyone is talking to Disney" about acquiring the network.
Mark Swanson ✉
Mark Swanson, a Newsmax writer and editor, has nearly three decades of experience covering news, culture and politics.
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