The entertainment and media giant, which reported earnings on Wednesday, is testing viewers’ tolerance for higher costs in a saturated TV market. The Walt Disney Company posted first-quarter earnings Wednesday that beat on the top and bottom lines but also revealed the start of predicted streaming subscriber losses at its Disney+ service.

Disney warned during its fiscal fourth-quarter report in November that it expected a “modest decline” in subscriptions during the December period.

The Walt Disney Company is the world's leading mass media and entertainment conglomerate, earning it the number-one spot among 'The Big Six' in media. Although Disney was founded over 100 years ago, it continues to be profitable in nearly all aspects of its business.

So you'd think losing 700,000 Disney+ subscriptions in the last quarter would be potentially devastating. However, the mega-corp is still quite content with that result, because while its namesake platform lost subscribers,