Yesterday Disney reported their 2nd quarter 2023 earnings, and once again, another live TV service has lost subscribers. Hulu reported that it lost about 2% of its live TV subscribers as it now has 4.4 million subscribers, down from 4.5 million at the end of 2022. (Note: Disney reported the 1st three months of 2023 as the second quarter of 2023.)
Hulu joins Fubo and Sling TV in reporting losing live Tv subscribers during the 1st three months of 2022. Cord cutting services are not alone in losing subscribers at the start of 2023. Every major cable TV company has also reported losing subscribers in the 1st three months of 2023 as cord cutting continues to speed up.
“We’re pleased with our accomplishments this quarter, including the improved financial performance of our streaming business, which reflect the strategic changes we’ve been making throughout the company to realign Disney for sustained growth and success,” Bob Iger, Disney’s chief executive officer, said in a statement on Wednesday. “From movies to television, to sports, news, and our theme parks, we continue to deliver for consumers, while establishing a more efficient, coordinated, and streamlined approach to our operations.”
Increasingly cord cutters are turning away from live TV streaming services and just subscribing to on-demand-only streaming services. If you are not a sports fan many TV fans have found on-demand services to be all they need.
Disney’s other properties looked better. Hulu on-demand was unchanged with 43.7 million subscribers, Disney+ went up 1% worldwide to 104.9 million subscribers but was down slightly in the US to 46.3 million subscribers. ESPN+ was up 2% to 25.3 million subscribers.
Hulu with live TV did see average revenue per subscriber up 5% to $92.32. This includes the base cost plus ad revenue. Disney+ revenue per subscriber jumped to $7.14 up 20% based on ads and subscription changes.
Cord cutting has never been larger but increasingly we are seeing the markets mature and cord cutters become more picky on what services they subscribe to.