Disney Plus lost millions of subscribers in 2022 and 2023, then stabilized
Disney Plus shed roughly 13 million subscribers between late 2022 and mid-2023. The service dropped from a peak of about 164 million subscribers in late 2022 to around 150 million by the end of 2023. The losses came in two waves: the first after Disney raised prices in December 2022, and the second when the company introduced an ad-supported tier and cracked down on password sharing in late 2023.
By 2024, the subscriber count stabilized and began growing again. Disney reported subscriber gains in the first quarter of 2024, suggesting the period of major cancellations had ended. The company attributed the turnaround partly to new content releases and the introduction of the cheaper ad-supported plan, which drew cost-conscious viewers back to the service.
Key Takeaways
- Disney Plus lost approximately 13 million subscribers between late 2022 and mid-2023, primarily after price increases and the introduction of an ad-supported tier.
- Price increases in December 2022 triggered the first wave of cancellations, with the standard plan jumping from $10.99 to $13.99 per month.
- Password-sharing restrictions and the ad-supported plan launch in late 2023 caused a second wave of subscriber losses before stabilizing.
- The service began adding subscribers again in 2024 after introducing a cheaper ad-supported option and releasing new content.
- Disney Plus subscriber numbers have fluctuated based on content releases, pricing changes, and competitive pressure from other streaming services.
What triggered the 2022 price increase and first wave of cancellations
In December 2022, Disney raised prices on its ad-free plan from $10.99 to $13.99 per month — a 27 percent increase. The company also introduced a new ad-supported tier at $7.99 per month for viewers willing to watch advertisements. This two-tier structure forced existing subscribers to either pay more or downgrade to the cheaper ad-supported option.
The price jump came as Disney faced pressure to turn Disney Plus profitable. The service had been losing money since its launch in 2019, and the company needed to boost revenue. However, the timing coincided with broader economic concerns about inflation and rising costs across entertainment and other sectors, making the increase unpopular with subscribers already managing tighter budgets.
Many subscribers cancelled rather than accept the higher price or switch to the ad-supported plan. Some moved to competing services like Netflix, Amazon Prime Video, or Hulu, while others straightforward cut their streaming subscriptions to reduce monthly expenses.
How password sharing restrictions affected subscriber numbers
In late 2023, Disney Plus began enforcing restrictions on password sharing across different households. Subscribers who shared their login credentials with family members or friends in other homes were required to either add those users as separate accounts or lose access. The company charged extra for adding household members outside the primary residence.
This policy change forced some viewers to choose between paying more or cancelling. Unlike the price increase, which affected all subscribers, the password-sharing crackdown targeted a specific behavior that many households had relied on. Some viewers who had shared accounts with adult children living elsewhere or with extended family members decided cancellation was cheaper than paying for multiple accounts.
Netflix had implemented a similar policy months earlier and reported that it initially drove cancellations but eventually led to revenue growth as some users upgraded or added paid extra-member accounts. Disney expected a similar pattern, though the timing meant both services were enforcing sharing restrictions simultaneously, giving subscribers fewer alternatives if they wanted to keep sharing access.
The ad-supported tier and its effect on subscriber counts
When Disney introduced the ad-supported plan at $7.99 per month in December 2023, it created a lower-cost entry point that attracted some new and returning subscribers. However, the rollout also required existing ad-free subscribers to either pay the higher price or downgrade to the ad-supported tier. This shift meant that while total subscriber numbers may have remained stable or grown, the company's revenue per subscriber often declined.
The ad-supported tier included commercial breaks during shows and movies, typically four to five minutes per hour. Some subscribers found this acceptable at the lower price point, while others preferred to cancel rather than watch advertisements. The tier also had some content restrictions — certain titles were unavailable on the ad-supported plan due to licensing agreements.
By offering a cheaper option, Disney aimed to recapture price-sensitive viewers who had cancelled during the 2022 price increase. The strategy appeared to work in 2024, when the company reported subscriber growth, though many of those new subscribers were on the lower-revenue ad-supported plan rather than the premium tier.
How Disney Plus subscriber losses compared to other streaming services
Disney Plus was not alone in losing subscribers during this period. Netflix, which had dominated streaming, also reported subscriber losses in 2022 before stabilizing in 2023. Amazon Prime Video and Hulu faced similar pressures as the streaming market matured and growth slowed across the industry.
However, Disney Plus's losses were notable because the service had grown rapidly from 2019 to 2022, adding tens of millions of subscribers each year. The shift from growth to decline marked a turning point for the service. Other platforms like Max (formerly HBO Max) and Paramount Plus also struggled with subscriber retention as competition intensified and consumers became more selective about which services to maintain.
The broader trend reflected a shift in the streaming market: the era of rapid subscriber growth was ending, and services now competed on content quality, pricing, and features rather than straightforward being new. Subscribers began cancelling and resubscribing based on content releases rather than maintaining year-round memberships, a pattern known as "churn."
Why some subscribers returned after cancelling
Disney Plus saw subscriber growth return in 2024 partly because the company released major new content. Shows like The Mandalorian season 3, Loki season 2, and films tied to the Marvel and Star Wars franchises drew viewers back to the service. Subscribers who had cancelled often resubscribed for a month or two to watch specific releases, then cancelled again.
The introduction of the cheaper ad-supported plan also brought back price-sensitive viewers who had left during the 2022 increase. At $7.99 per month, the ad-supported tier was closer to the original $10.99 price point, making it more attractive to budget-conscious households. Some subscribers who had switched to competitors found the combination of lower price and new content worth returning for.
Disney also bundled Disney Plus with Hulu and ESPN Plus at discounted rates, which encouraged subscribers to maintain the service as part of a larger package rather than cancelling it individually. This bundling strategy helped stabilize subscriber numbers by making the overall cost more competitive.
What the cancellation trend means for Disney Plus going forward
The period of major subscriber losses appears to have ended, but it revealed that Disney Plus cannot rely on continuous growth the way it did in its first few years. The service now operates in a mature market where subscriber numbers fluctuate based on content releases, pricing, and competition.
Disney's strategy has shifted toward profitability rather than subscriber growth at any cost. The company raised prices, introduced advertising, and enforced password-sharing restrictions — all moves designed to increase revenue per subscriber rather than add new ones. This approach is more typical of established services like Netflix and cable television, where the focus is on keeping existing subscribers and maximizing what they pay.
Future subscriber numbers will likely depend on Disney's ability to release compelling content consistently, maintain competitive pricing, and manage the balance between the ad-supported and premium tiers. The service faces ongoing competition from Netflix, Amazon Prime Video, and newer entrants, all competing for the same pool of subscribers with limited budgets for entertainment.
Frequently Asked Questions
Is Disney Plus still losing subscribers?
No. After losing subscribers in 2022 and 2023, Disney Plus reported subscriber growth in 2024. The company attributed the turnaround to new content releases and the cheaper ad-supported plan. Subscriber numbers can still fluctuate month to month based on content releases and seasonal viewing patterns.
Why did Disney Plus raise prices so much?
Disney Plus had been losing money since launch and needed to become profitable. The company also faced rising costs for content production and licensing. The price increase was designed to boost revenue, though it came at the cost of losing some subscribers who chose to cancel or downgrade to the ad-supported tier.
Can I still share my Disney Plus password with family?
Disney Plus allows password sharing within a household, but not across different addresses. If you want to share with someone in another location, you must add them as a paid extra-member account, which costs extra per month depending on your plan.
Is the ad-supported plan worth it compared to the ad-free plan?
That depends on your budget and tolerance for advertisements. The ad-supported plan costs $7.99 per month and includes commercial breaks. The ad-free plan costs $13.99 per month. If you watch Disney Plus regularly, the ad-free plan may feel less disruptive, but the ad-supported tier offers significant savings for occasional viewers.
What happens if I cancel Disney Plus and want to come back later?
You can resubscribe at any time. Your profile and watch history will be available when you return, though Disney may offer promotional pricing to returning subscribers. Many viewers now subscribe for a month or two to watch new releases, then cancel until the next major content drop.