This has been attributed to macroeconomic factors like inflation, which have spiked up the cost of production for the company, as well as adverse foreign exchange impact that decreased Disney+’s ARPU by 5%. Disney+ also faces significant competition from Netflix NFLX, which has a strong pipeline of content and has reached 223 million subscribers worldwide. Nevertheless, Disney is focusing on the realignment of cost, including meaningful rationalization of marketing spending, and optimization of content slate and distribution approach to deliver a steady state of high-impact releases that efficiently drive engagement.