Disney+ Faces Significant User Decline Amid Content Failures

Disney+ Faces Significant User Decline Amid Content Failures

Disney+ is experiencing a notable decline in user engagement. According to the latest data from mobile big data company AijiaWorks, Disney+ had 2.49 million monthly active users (MAU) in July, a decrease from the 2.52 million reported the previous month. This decline places Disney+ at a significant disadvantage compared to other online video streaming services (OTT).

Disney+’s Decline: Key Factors

The drop in Disney+’s user base appears to be primarily driven by failures in its original content offerings. This is especially evident in the Korean market. Disney+ invested approximately 24 billion won in the drama "The Dominators" and about 40 billion won in "Three Meals a Day Uncle," but both projects failed to achieve the expected success. The most recent release, "Fire and Scandal," received poor reviews and failed to attract significant interest. Despite Disney+’s efforts to produce a large number of Korean originals, these series have consistently underperformed, contributing to a steady decline in user numbers.

Initially, Disney+ was seen as a formidable competitor to Netflix upon its entry into the Korean market. However, the platform’s lackluster content offerings have led to a considerable drop in its user base. Disney+ now has significantly fewer monthly users compared to Netflix, which boasts over 11 million, as well as domestic OTT platforms like Tving and Coupang Play.

Price Hike and User Discontent

Disney+ raised its subscription fee by 4,000 won following the success of the original series "Moving." This price increase, coupled with a perceived lack of valuable content, has led to widespread user dissatisfaction. Many users have expressed frustration with the price hike, given the limited content available. According to a report by digital marketing platform Nasmedia, Disney+ had the highest rate of user cancellations within six months of subscription, with 60% of users opting to cancel. The primary reason for cancellation was “lack of appealing content,” followed by “subscription fee being too high.”

Comparison with Competitors

In comparison, Disney+’s monthly user count remains significantly lower than that of Netflix (11.11 million), Tving (7.56 million), and even Wave (4.39 million). While Netflix and Tving have seen increases in their user base, Disney+ continues to struggle with a steady decline. Wave, despite having no original dramas this year, has also experienced a slight increase in users.

Future Outlook for Disney+

To address its current issues, Disney+ must focus on enhancing its content offerings and improving the overall user experience. Strengthening content strategy and producing high-quality original programming will be crucial for regaining user trust and engagement. Additionally, reconsidering its pricing strategy to better align with user expectations and providing tangible value will be essential in retaining and attracting subscribers.

In summary, Disney+ is facing severe challenges due to a decline in user numbers and underperforming content. To close the gap with competitors and stabilize its user base, the platform will need to implement effective content strategies and revise its pricing policies.

Keywords: Disney+, user decline, content failures, OTT platforms, Korean original dramas, price hike, Netflix, Tving, Wave, user cancellations