Disney makes major change streaming fans will notice right away | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Over the last few years, streaming services have risen in popularity due to the massive amount of content they offer, such as movies, on-demand shows, and live television, all contained on a single platform.

Because Disney is an expert in multimedia, the company saw the huge potential and massive monetary gains that entering the streaming service industry could bring to its business and was quick to develop its own.

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In 2019, Disney launched its streaming service Disney+ in the U.S., and since then, it has grown consistently, gaining tens of millions of subscribers. Its quick success and fans’ demand for the service later pushed it to expand to other countries, gradually increasing its awareness and gaining even more subscribers.

However, the company’s latest earnings revealed that Disney+ had lost subscribers for the first time after multiple years of growth. Disney reported a 1% decline in subscribers compared to the previous quarter, with a 1% increase in domestic subscriptions and a 2% decrease internationally.

As shocking as this may sound to some, the company had already predicted this slowdown last quarter, warning investors about an upcoming slight decline in streaming subscribers.

People walk along Main Street in front of Cinderella’s Castle as the sun sets at the Magic Kingdom Park at Walt Disney World.

Gary Hershorn/Getty Images

Disney makes multiple changes in its streaming business

During the peak of the COVID-19 pandemic, Disney began focusing on creating original content to foster subscriber growth for Disney+, especially when people were forced to quarantine themselves at home and desperately needed more content to consume.

However, the company has shifted its strategy to focus on profitability rather than subscriber numbers.

To make its streaming platform more desirable amid growing competition, Disney raised subscription costs to pay off its huge streaming investments, especially in obtaining live sports licensing deals for its ESPN banner. This spike in prices put the company at risk of losing subscribers.

Nonetheless, to reduce its subscriber loss, Disney has also added more ad-supported tiers to make subscriptions more affordable while increasing its ad revenue profits.

Disney announces the cancellation of “The Princess and the Frog” spin-off show

On Monday, Walt Disney Animation Studios (DIS) confirmed to THR that it will no longer develop original long-form streaming content for Disney+.

This confirmation comes after the company announced it was completely scrapping the highly-awaited Tiana series, which would’ve been a spin-off to “The Princess and the Frog” movie, as no other films have been made of the franchise since its release in 2009.

The show that followed the “The Princess and the Frog” storyline was first teased in 2020 for a potential release in 2024. However, Disney had given no further updates to fans by the end of last year.

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Additionally, Disney revealed that the production costs for this Tiana spinoff show were too costly and could no longer be met due to the shift in its streaming and production strategies.

The company also confirmed to THR that this change would result in multiple layoffs in its Vancouver, Canada studio. However, no specific number has yet to be given.

Although the Tiana spinoff was canceled, that’s not the end of the “The Princess and the Frog” franchise because, according to Disney, a short-form special inspired by the movie is in its infancy stages.