The dynamic world of streaming witnessed a dramatic shake-up in September 2025, as Disney+ and Hulu faced a significant surge in subscriber cancellations. While headlines focused on the controversial suspension of Jimmy Kimmel’s late-night show, a deeper dive into the data reveals a more complex narrative, where heightened churn rates were notably offset by a surprising uptick in new sign-ups. This period also coincided with strategic price adjustments and broader shifts in the streaming landscape, painting a multifaceted picture of subscriber behavior for the entertainment giants.
Unpacking the September 2025 Streaming Rollercoaster
September 2025 proved to be a pivotal month for Disney’s streaming services. Data from research firm Antenna indicated a stark doubling of U.S. cancellation rates for both Disney+ and Hulu. For Disney+, the churn rate jumped to an average of 8%, a significant leap from the 4% recorded in the preceding two months. Hulu experienced a similar trend, with its cancellation rate climbing to 10% from a prior 5%. These figures stood against an industry-weighted average of 7% across nine premium services during the same period.
The sheer volume of cancellations was substantial: Antenna estimated Disney+ lost approximately 3 million subscribers, while Hulu saw around 4.1 million cancellations. These numbers far exceeded their respective three-month averages. However, attributing this churn solely to a single event would be an oversimplification.
The Jimmy Kimmel Controversy and Its Immediate Aftermath
The catalyst that initially grabbed public attention was ABC’s decision to indefinitely suspend “Jimmy Kimmel Live!” on September 17. This move followed controversial remarks Kimmel made about “the MAGA gang” in relation to the murder of conservative activist Kirk. The suspension sparked immediate outrage, particularly from the right, leading two major ABC affiliate groups, Nexstar and Sinclair, to preempt the show.
In response, a wave of consumers took to social media, threatening or actively canceling their Disney+ and Hulu subscriptions under hashtags like #CancelDisney. Celebrities, including Howard Stern, reportedly joined the boycott. When Kimmel returned to air on September 23, his show delivered its highest-rated episode ever, even amid affiliate boycotts. Disney insiders noted that while pending cancellations increased in September, the trend quickly subsided, with some subscribers even reinstating their accounts after Kimmel’s return.
The Undercurrent: Price Hikes and Broader Market Shifts
While the Kimmel controversy provided a visible flashpoint, other significant factors were at play. Crucially, Disney had announced substantial price increases across most Disney+ and Hulu streaming plans and bundles, effective October 21. Notifications for these hikes were sent to subscribers on September 23, the very day Kimmel returned. Price adjustments are a known driver of short-term churn, as subscribers re-evaluate their commitments.
Moreover, the elevated churn in September was not unique to Disney. Other major streaming platforms also experienced an uptick: HBO Max’s churn rose from 8% in August to 9% in September, and Apple TV+ saw its rate climb from 6% to 7%. This broader trend aligns with Nielsen data suggesting an annual pattern in September, where the football season often draws viewers back to traditional pay-TV and away from streaming services. This suggests a confluence of events, not just one, influencing subscriber behavior.
A Surge in New Sign-Ups Offsets Cancellations
Despite the heightened churn, both Disney+ and Hulu experienced a significant surge in new sign-ups during September. This is a critical nuance often overlooked. Disney+ attracted 2.18 million new subscribers, an increase from 1.99 million in August and 1.65 million in July. Hulu similarly saw 2.11 million new sign-ups, up from 1.97 million and 1.73 million in the preceding months. Over the 12-month period leading up to September 2025, Disney+ averaged 1.99 million sign-ups, while Hulu averaged 2.25 million.
The gross additions for both services each commanded a 14% market share in September, signaling robust appeal despite the churn. This suggests that while some subscribers left, the platforms continued to attract a steady stream of new users, mitigating the net impact of cancellations. This ability to attract new audiences highlights the enduring content appeal of these platforms.
The Evolving Landscape of Streaming Measurement
Antenna, the New York-based research firm, bases its estimates on millions of permission-based, consumer opt-in transaction records, including digital purchase and cancellation receipts, subscription signals, and financial data. The firm refines this raw data to correct for demographic biases, providing a comprehensive, U.S.-focused view. However, Antenna’s methodology carries important caveats. It does not cover subscriptions via Disney’s wholesale streaming business, such as its deal with Charter, nor does it differentiate between subscribers who canceled as part of upgrading, downgrading, or switching plans.
In a broader strategic shift, Disney announced it would cease reporting specific subscriber numbers for Disney+, Hulu, and ESPN+ starting in early 2026. The company stated that this metric has become “less meaningful to evaluating the performance of our businesses,” choosing to focus instead on financial performance. This move signals a maturing streaming market where profitability, not just subscriber volume, is the new benchmark for success. The company is scheduled to release its September 2025 results on November 13.
Beyond the Numbers: Strategic Implications
The September 2025 data underscores the volatility inherent in the streaming market, where subscriber loyalty can be influenced by a myriad of factors – from controversial celebrity suspensions to essential price adjustments and seasonal viewing habits. Disney’s experience highlights the delicate balance between content strategy, pricing power, and managing public perception.
The simultaneous increase in sign-ups despite high churn suggests that the core value proposition of Disney+ and Hulu remains strong. New subscribers are still drawn to their extensive content libraries and bundle offerings. For streaming providers, these dynamics emphasize the need for robust subscriber acquisition strategies alongside strong retention efforts. Understanding the full picture, beyond just raw cancellation figures, is crucial for long-term growth and sustained profitability in this competitive sector.
Frequently Asked Questions
What factors contributed to the sharp increase in Disney+ and Hulu cancellation rates in September 2025?
The surge in cancellations for Disney+ and Hulu in September 2025 was driven by a combination of factors. Primarily, the controversial, brief suspension of “Jimmy Kimmel Live!” by ABC ignited consumer outrage, leading some subscribers to cancel in protest. Concurrently, Disney announced significant price increases for its streaming services, which often prompts a short-term rise in churn as users re-evaluate their subscriptions. Additionally, broader industry trends, including a seasonal shift towards traditional TV during football season, also contributed to an overall uptick in churn rates across multiple streaming platforms.
How does Antenna collect its streaming subscriber data, and what are its limitations?
Antenna, a New York-based research firm, collects its streaming subscriber data from millions of permission-based, consumer opt-in raw transaction records. This includes digital purchase and cancellation receipts, consumer subscription signals, and credit, debit, and banking data. While this methodology provides robust U.S.-based insights, it has limitations. Antenna’s data does not account for subscriptions made through Disney’s wholesale business (e.g., with Charter) and does not clarify whether “cancellations” are true exits or part of a subscriber upgrading, downgrading, or switching their streaming plans.
Why is Disney changing how it reports streaming subscriber numbers, and what does this signify for investors?
Disney announced it would stop reporting specific subscriber numbers for Disney+, Hulu, and ESPN+ starting in late 2025/early 2026, stating the metric has become “less meaningful” to evaluating business performance. This shift signifies a maturation of the streaming market. Instead of focusing on raw subscriber growth, Disney intends to prioritize reporting on financial metrics like profitability and average revenue per user (ARPU). For investors, this suggests a move towards valuing sustainable, profitable growth in streaming, rather than purely subscriber volume, aligning with a broader industry trend among mature streaming services.
Ultimately, while the Kimmel controversy provided a dramatic backdrop, Disney’s September 2025 streaming performance reflects the complex interplay of consumer sentiment, pricing strategies, and the evolving competitive landscape. The ability to continually attract new users, even amidst churn, will be key to long-term success.
