Disney has suffered a drop in subscriber numbers for its streaming service after increasing prices for millions of users.
The total number of subscribers to Disney+ stood at 125m at the end of last year, a fall of 700,000 compared with a year before. The decline came from the group's international operations, while its domestic subscriber base rose slightly.
It comes after the media giant raised prices in October, leaving customers paying up to £24 more per year. The cost of a standard subscription rose by £1 to £8.99 per month, while a premium subscription increased from £10.99 to £12.99.
Disney has been battling to keep up with its arch rival Netflix, which is widely regarded as the victor in the streaming wars. Bob Iger, the chief executive of Disney, has acknowledged that his company's technology is lagging behind Netflix.
Netflix has succeeded in winning over viewers even as it has raised prices and sought to reduce password sharing. The company has topped 300m global subscribers and posted profits of more than $10bn (£8bn) for the first time last year.
By contrast, the decline in subscriber numbers suggest audiences are less willing to stick with Disney+ when prices go up. Bosses forecast a "modest" decline in subscriber numbers in the current quarter.
Nevertheless, Disney's streaming business, which also includes its Hulu service in the US, posted a profit of $293m over the three-month period, up from a loss of $138m at the same time last year.
Disney has reported three consecutive quarters of streaming profits as higher prices, a new advertising tier and a password-sharing crackdown pay off.
The business enjoyed a wider boost to its profits last year as audiences flocked its blockbuster Moana sequel. Its film division also benefited from the festive release of Mufasa: The Lion King.
This success will help to ease investor concerns about Disney's waning creativity following a string of flops such as Indiana Jones and the Dial of Destiny and Elemental.
Mr Iger hailed an "outstanding" box office performance for Disney's studios, which made a $312m profit following losses the previous year.
It helped to offset troubles in Disney's theme park division, which took a $120m hit after hurricanes Milton and Helene prompted the closure of the company's Florida theme parks for a day and the cancellation of a cruise.
The company's traditional cable TV business also suffered from falling subscriber numbers and rising programming and production costs.
Overall, Disney reported a pre-tax profit of $3.7bn in the quarter, up from $2.9bn the previous year.
Mr Iger said: "Our results this quarter demonstrate Disney's creative and financial strength as we advanced the strategic initiatives set in motion over the past two years."