Disney Plus Reports Historic Subscriber Loss but Higher Revenues Amid Streaming Evolution

First-Ever Subscriber Decline Marks Streaming Service Evolution

Disney Plus has experienced its first-ever subscriber decline, losing 700,000 subscribers worldwide in the first quarter of 2025, bringing its total subscriber count to 124.6 million. This historic shift comes at a pivotal moment for the streaming giant.

Price Increases and Strategic Changes

The decline follows significant price adjustments implemented in fall 2024, where Disney Plus with Ads increased from $7.99 to $9.99, and the Ad-Free tier rose from $13.99 to $15.99. Additionally, the company implemented a password-sharing crackdown in September, introducing a ‘Paid Sharing’ plan across multiple regions that restricts account usage to single households unless additional fees are paid.

Financial Impact and Future Outlook

Despite these changes, there’s some positive news for subscribers as Disney CFO Hugh Johnston has confirmed there will be no Disney Plus subscription price increases for the next 12 months. While domestic park attendance showed some decline, the company’s overall performance remains strong, with net income increasing nearly 23% to $2.64 billion compared to the previous year.

Content and Service Evolution

Looking ahead into 2025, Disney Plus is expanding its content lineup with new releases, including a new season of Doctor Who, more Andor, Percy Jackson and the Olympians, and The Bear’s fourth season (expected in 2026). The platform continues to adapt to market demands, with its ad-supported option now attracting one in four users.

Industry analysts note that Disney’s streaming business faces ongoing challenges in a crowded marketplace, particularly among price-conscious viewers. While profitability has improved, the subscriber decline suggests that price increases and content gaps may be contributing to customer churn, even as competitors like Netflix and Amazon Prime maintain their momentum.