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.

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,