Disney Slides As Wall Street Disappointed With Subscriber Growth
After a rough day for Wall Street, Disney shares are tumbling after hours as its Q4 earnings showed Disney+ subscriber growth missed Wall Street’s expectations.
Subscribers for the company’s streaming service, which has received widespread praise for hit shows like “the Mandalorian”, increased 1.8% QoQ – equivalent to 2.1MM new customers – to 118.1MM, missing the average Street estimate for the subscriber base to increase to 119.6MM. Meanwhile, the company reported earnings of 37 cents a share excluding some one-time items, missing estimates of 49 cents.
Shares were off about 5% after DIS released the earnings report after the close…
…shares hit their lowest level since January.
The miss on streaming numbers was part of what was a broadly disappointing quarter for the entertainment giant, which also saw profit decline at its film and TV businesses.
In a statement released alongside its Q4 earnings, the entertainment giant continued to stress that its focus is on long-term growth in the streaming segment.
“We continue to manage our [direct-to-consumer] business for the long-term, and are confident that our high-quality entertainment and expansion into additional markets worldwide will enable us to further grow our streaming platforms globally.”
Disney has made its family-oriented streaming service its major focus for growth in the coming years, and looks to reach as many as 260 million customers by 2024. In fact, some analysts have even joked that Disney is now a streaming service with a diversified entertainment conglomerate attached. The company will celebrate the 2nd anniversary of the $8-a-month Disney+ streaming service on Nov. 12 by offering new movies and promotions across the Disney empire.
Readers can find DIS quarterly report below:
q4 Fy21 Earnings on Scribd