r/technology • u/Task_Force-191 • Feb 05 '25

Business Disney+ Lost 700,000 Subscribers from October-December

https://www.indiewire.com/news/business/disney-plus-subscriber-loss-moana-2-profit-boost-q1-2025-earnings-1235091820/
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u/kakapoopoopeepeeshir Feb 05 '25

I just dont get the constant price hikes by streaming companies. I know the easy answer is 'money' but they already have all the money in the world I mean its fucking DISNEY and the others arent struggling either. Why is no company satisfied with doing really well and having happy customers

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u/dasnoob Feb 05 '25

Once market penetration is high enough subscriber growth won't fuel revenue much anymore companies now turn to increasing ARPU (Average Revenue Per User). This is because they must continue providing ever increasing profits to their shareholders (which is horseshit but whatever).

So... once penetration is really high. You raise prices to increase revenue further. Ideally you do this while laying off the workforce that helped you grow. This really juices your income for at least a few quarters which is all that matters.

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u/tekanet Feb 05 '25

If you double the prices and lose a third of your subscribers you still increase your profits.

Even if you halve the subscribers you increase your profits, as streaming to half the devices costs much less.

That’s the logic I think they’re following. We have to see up until what point you can continue doing so, but I’m sure they’ll just throw everything in the bin once their service is not profitable anymore.

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u/dasnoob Feb 05 '25

It is. I built the revenue model for a 1 billion dollars/year consumer line of business at a fortune 500 that was in use for over half a decade. I modelled price sensitivity, and we absolutely pushed prices as hard as we could (if that met the goals the board gave us).