Disney + added fewer subscribers this quarter than expected

The decline was not good for Disney’s streaming ambitions. Disney + added only 2.1 million subscribers in the fourth quarter, giving it a total of 118.1 million users. This is in line with the company’s already cautious estimate (at “low single-digit millions”) and 60 percent more total customers than a year earlier, but well below what some analysts had expected. CNBC he noted that StreetAccount predicted 9.4 million new users this quarter.

Disney’s Direct Consumer Streaming-oriented division also lost $ 630 million (up from $ 374 million a year earlier) in part due to additional spending on manufacturing, marketing and “technology costs”. This was expected due to the growing service, but they suggest that Disney + is not yet net positive for Disney two years after launch. During the earnings conversation, the head of the company, Bob Chapek, was still convinced that the company would achieve the goals of the subscribers (over 230 million users by September 2024) and make a profit.

The media giant warned of “obstacle winds”. While it didn’t shed much light on the problems at first, we’d notice that Disney + had a relatively quiet summer for shows, with series like What if …? i Monsters in action cargo transfer. The company has aired two blockbuster films, Black widow i Jungle cruise, but the original films were not the strong point.

Things look brighter for fall. Disney + is being transmitted Shang-Chi November 12, launch of a show like Hawkeye i Bob Fett’s bookand expansion into countries like South Korea. All of this could increase subscribers and viewership. The question is whether there is enough current content and expansion to get Disney + back in shape – especially when the company returns to its first movie premieres in theaters.

That was not the only long-term plan either. Chapek teased the prospects for a Disney metaverse that would include company characters and connect the physical and virtual worlds. However, the CEO stressed that this is a long-term goal and did not share timelines or other technical details. For now, this is more of an attempt to counter Facebook’s Meta rebranding than a tangible project.

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Naveen Kumar

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