Amid a broader cost-cutting initiative, Disney has reported a loss of 4 million subscribers for its flagship streaming service in the first quarter of the year. Concurrently, Disney+ managed to reduce its losses by $400 million (£316.5 million).

As the traditional film and television market experiences a decline, the iconic entertainment powerhouse housing beloved brands like Mickey Mouse, Star Wars, and Marvel movies faces mounting pressure to ensure profitability in its streaming business.

Following this news, the company's shares saw a decline of approximately 5% during after-hours trading in New York.

The majority of the subscriber losses were attributed to the Hotstar service in Asia, which lost the streaming rights to Indian cricket matches last year.

In addition, Disney+ experienced a decrease of approximately 300,000 customers in the US and Canada following a subscription price increase.

These developments occurred as Disney's streaming business managed to reduce its operating losses to $659 million for the first quarter of this year, a notable improvement compared to the previous quarter's losses of $1.1 billion.

Disney's CEO, Bob Iger, expressed that the enhanced financial performance reflects the strategic adjustments implemented across the company to realign Disney for long-term growth and prosperity.

Iger had previously stated that Disney+ had reached a pivotal moment and is expected to achieve profitability by the following year.

Earlier in the year, the entertainment giant reported a decline in subscriber numbers for the first time and unveiled plans to reduce its workforce by 7,000 employees.

Following the recent strike by thousands of Hollywood TV and movie screenwriters—the first in 15 years—Disney has made its latest announcement. The writers are advocating for improved compensation and working conditions due to the transformative impact of the streaming era on the traditional television and film industry.

The previous writers' strike occurred in 2007, lasting 100 days and resulting in an estimated $2 billion loss for the industry.

When asked about the potential cost to Disney resulting from the ongoing strike, the company's Chief Financial Officer, Christine McCarthy, refrained from providing a specific figure.

Already, the walkout has led to the suspension of several Disney projects, including those slated for release on Disney+.

In recent years, Disney has made significant investments amounting to billions of dollars in its streaming platforms, fundamentally reshaping the company's identity from a traditional television, movie, and theme park enterprise into a prominent player in the streaming industry.

Presently, Disney boasts a combined subscriber count exceeding 231 million across its three streaming platforms, which encompass the sports-centric ESPN+ and the broader entertainment hub Hulu.

While Disney+ has amassed nearly 158 million subscribers globally, it still trails behind its competitor Netflix, which boasts a subscriber base of 232.5 million.