According to Disney, its flagship streaming service lost 4 million subscribers in the first three months of the year due to a broader cost-cutting effort.
At the same time, the Disney+ platform trimmed its losses by $400 million (£316.5 million).
The home of Mickey Mouse, the Star Wars franchise and Marvel films is under pressure to make its streaming business profitable as the traditional film and television market shrinks.
Shares of the company fell about 5% in after-hours trading in New York.
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Most of the subscriber losses came from its Hotstar service in Asia, which lost streaming rights to Indian cricket matches last year.
Disney+ also lost around 300,000 customers in the US and Canada as a result of the increase in subscription prices.
This comes as Disney’s streaming business trimmed its operating losses to $659 million in the first three months of this year. That was down from $1.1 billion in the previous quarter.
Disney CEO Bob Iger said the improved financial performance reflected “the strategic changes we’ve made across the business to position Disney for sustained growth and success.”
He previously said Disney+ has reached a “tipping point” and will be profitable next year.
Earlier this year, the entertainment giant reported falling subscribers for the first time and announced plans to cut 7,000 jobs.
The latest announcement comes after thousands of Hollywood television and film screenwriters last week held their first strike in 15 years.
They are demanding better wages and working conditions as the transition to streaming has turned the traditional TV and film industry upside down.
The last writers’ strike was in 2007. It lasted 100 days and cost the industry an estimated $2 billion.
On Wednesday, Disney’s CFO Christine McCarthy declined to say how much the latest strike could cost the company.
The strike has already halted several Disney projects, including those set to run on Disney+.
Disney has poured billions of dollars into its streaming platforms over the past few years, evolving from a company with its roots in traditional television, movies, and theme parks into one of the biggest players in the streaming industry.
The company now has more than 231 million combined subscriptions across its three streaming platforms, which also include sports-focused ESPN+ and broader entertainment site Hulu.
Disney+ has nearly 158 million subscribers worldwide, but that still lags behind competitor Netflix’s 232.5 subscribers.
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