Mon. Dec 6th, 2021

Disney has made the family streaming service its main focus for growth in the coming years, and it looks like it will reach as many as 260 million customers by 2024.

By Bloomberg

Walt Disney Co. reported a smaller-than-expected increase in subscribers to its namesake streaming service, a sign that Disney + is struggling to broaden its appeal after an explosive start.

The video service gained 2.1 million customers in the fiscal fourth quarter, Disney, Burbank, California, said Wednesday, bringing the total to 118.1 million worldwide. Analysts forecast 119.6 million, the average of estimates compiled by Bloomberg.

The fog was part of a broadly disappointing quarter for the entertainment giant, which also saw profit declines at its film and TV businesses.

Disney has made the family streaming service its main focus for growth in the coming years, and it looks like it will reach as many as 260 million customers by 2024. The company celebrates the second anniversary of the $ 8-a-month Disney + on Nov. 12. offers new movies and promotions across the Disney empire.

Disney reported earnings of 37 cents per share in the fourth quarter, excluding some items, missing analysts’ forecasts of 49 cents. Sales in the period ended October 2 increased to $ 18.5 billion, with estimates of $ 18.8 billion.

Disney shares fell as much as 4.3% to $ 167 in extended trading after the announcement. They fell 3.7% this year to Wednesday’s closing in New York.

CEO Bob Chapek said in September that investors should expect Disney + subscribers to “increase by low single-digit millions” from the previous quarter. While analysts downgraded their estimates, they still expected the service to add 4.9 million customers.

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