Disney’s main streaming service lost 4 million customers in the first quarter due to cost-cutting.
Disney+ reduced losses by $400m (£316.5m).
As the film and TV market decreases, the home of Mickey Mouse, Star Wars, and Marvel blockbusters must make its streaming business successful.
In New York after-hours trade, business shares plunged 5%.
Hotstar, which lost Indian cricket streaming rights last year, lost most of its subscribers in Asia.
After hiking pricing, Disney+ lost 300,000 US and Canadian subscribers.
Disney’s streaming business’s first-quarter operating losses dropped to $659m. $1.1bn was decreased from the prior quarter.
Disney CEO Bob Iger attributed the financial improvement to “the strategic changes we’ve been making throughout the company to realign Disney for sustained growth and success.”
He had predicted Disney+’s “turning point” and profitability next year.
The entertainment company disclosed 7,000 job cuts and initial declining subscription statistics earlier this year.
The declaration follows last week’s walkout by hundreds of Hollywood screenwriters.
Since streaming has disrupted the TV and film industries, they want better compensation and conditions.
Writers last struck in 2007. The sector lost $2bn over 100 days.
Disney’s CFO Christine McCarthy wouldn’t estimate the strike’s cost on Wednesday.
Disney+ developments have been halted by the walkout.
Disney has invested billions in its streaming services, changing it from a typical television, movie, and theme park firm into a streaming industry leader.
Its three streaming platforms, including ESPN+ and Hulu, have over 231 million subscribers.
Disney+’s 158m subscribers behind Netflix’s 232.5.