For the first time since its launch, Disney has reported a decline in Disney+ subscribers. For the first quarter of 2025, there was a decrease of 0.7 million from the fourth quarter of 2024, bringing their subscriber total to 124.6 million.
The drop follows a series of changes to Disney+'s pricing and policies. In the fall of 2024, Disney implemented price increases across its subscription plans. The ad-supported tier of Disney+ rose from $7.99 to $9.99 per month, while the ad-free version saw a hike from $13.99 to $15.99. In addition to the price increases, Disney also began taking significant steps to curb password sharing. In September 2024, the company introduced a "Paid Sharing" system in select markets, including the United States, Canada, and parts of Europe. This initiative limits account usage to members of a single household, effectively preventing subscribers from sharing their credentials with friends or extended family members outside their primary residence. Under the new policy, users who wish to share their account with individuals in different households must pay an additional fee.
Despite the subscriber drop, Disney CEO Bob Iger maintained a positive outlook during an earnings call discussing the results. He acknowledged the decline but emphasized that cancellations were not as severe as initially anticipated.
While Disney expects Disney+ subscriptions to continue declining into the second quarter of 2025, the company reported that it experienced growth in other areas of its streaming business. Hulu, which is also owned by Disney, gained 1.6 million subscribers during the same quarter, bringing its total subscriber count to 53.6 million.
