Quick News Bit

Disney Seen Reporting Tepid Growth at Streamer Disney+

0

Walt

Disney Co.

DIS -0.02%

is expected to show a modest increase in subscriptions to its Disney+ service in its December quarter as the streamer looks to revive momentum after its explosive growth during the first year of the Covid-19 pandemic.

Analysts expect Disney+ to add seven million new customers to the service in the quarter, bringing its total to 125.4 million subscribers, according to a FactSet poll. That number would follow a disappointing two million subscribers added in the quarter that ended last October.

The world’s largest entertainment company reports its fiscal first-quarter earnings Wednesday afternoon—its first earnings report since longtime executive

Robert Iger

left the company as executive chairman at the end of December. Disney named

Susan Arnold

as his replacement.

Disney is likely to face questions about the next frontiers for growth at Disney+ as expectations for more sign-ups in the U.S. have been dwindling. It might also face questions about decisions in recent months to send some films straight to its streaming service without a theatrical release, even as many viewers returned to movie theaters.

Disney’s biggest streaming rival,

Netflix Inc.,

last month said it added 8.3 million subscribers, fewer than investors had expected, and ratcheted down its estimates for growth.

Disney Chief Executive

Bob Chapek

said in November that the company is still on track to reach around 260 million customers by the end of fiscal 2024.

Analysts expect Disney’s theme parks to show a strong recovery in sales despite the spread of the Omicron variant of the coronavirus over the holiday season. When vaccination rates rose last year, ticket sales ramped up and theme park revenue jumped 99% in the company’s fiscal fourth quarter.

Analysts at KeyBanc Capital Markets wrote this week that they expect revenue at the company’s Parks & Experiences division to grow 56% in fiscal 2022 and return to its pre-pandemic peak next year.

Ticket sales ramped up and theme park revenue jumped in Disney’s fiscal fourth quarter.



Photo:

Alvaro Blanco (Es-Es/Zuma Press

Investors, meanwhile, have punished Disney because of slowing subscriber growth. The company’s share price has fallen about 30% from highs of nearly $202 reached in March 2021. Shares are down about 8% since the beginning of the year.

“Clearly the market is becoming more negative on the streaming story. People aren’t getting as much credit as they were a year ago, and Disney is no exception,” said analyst Doug Creutz of Cowen Inc.

Last quarter, Mr. Chapek said he expected that a stream of new shows and films out in the second half of 2022 would help reboot demand for Disney+. Those include the spy thriller series “Andor,” the superhero miniseries “Ms. Marvel” and a live action reboot of “Pinocchio.”

The launch of Disney+ has brought a bit of magic to a company whose stock had taken a nosedive after the coronavirus shut down theme parks and movie theaters. WSJ explains how Disney’s streaming platform has become a top competitor in an already crowded field. Photo illustration: Jacob Reynolds/WSJ

Write to Robbie Whelan at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment