Disney Streaming Subscriber Growth Slows Reaches 118 Million Worldwide

American entertainment giant Disney said Wednesday that the leading streaming service failed to live up to expectations in the last quarter when the epidemic began to bite.

Disney+ has 118 million members worldwide, but analysts expect millions more to sign up, causing a sharp drop in the entertainment giant’s share price in post-market deals.

Disney CEO Bob Chapek told analysts on a conference call that the two-year service is struggling with a number of issues that come with releasing new shows and movies.

“Obviously it’s only been two years since Disney+ launched and the taste in content is great,” he said.

“And if it happens to you at the same time as an epidemic and you have to stop production, that’s not a good combination,” he added.

Rival Netflix has pledged to significantly expand its mainstream programming offerings after experiencing a slowdown in the epidemic.

Disney+ is growing disappointingly as it tries to regain momentum in its epidemic-stricken travel and theme park business.

“We have made great strides in continuing our business while taking significant and innovative strides in the direct-to-consumer space and in our parks, especially with our popular new Disney Genius and Magic Key offerings,” said Chapek.

Effects on parks and movies

Disney plans to put out a big commercial on Friday to celebrate Disney+’s second anniversary this week.

Even more worrying for investors, the average monthly income of Disney+ subscribers fell 9 percent year-on-year to $4.12 (about rupees 307).

In its earnings report, the group attributed the decline in low-cost memberships in markets such as India and Indonesia.

He also mentioned that Disney+ is facing cost overruns in terms of content production, marketing, and technology.

Disney shares were down four percent at the close of trading Wednesday.

However, the wildly popular streaming service uses a controversial strategy from its parent company, whereby some films are shown in theaters and online for an additional fee for platform members.

Following Mulan in 2020, The Black Widow and Jungle Cruise were released this summer to anger theaters and stars like Scarlett Johansson who criticized their lost earnings.

“When a blockbuster movie is shown on a cinema-style streaming service, it’s expensive to access,” Rob Anderley, a technology analyst at Anderleys Group, told Disney.

“But this driver has evaporated.”

According to analysts, Disney recently changed course and allowed the film to hit theaters for a while before hitting the streaming service.

“If you’re forced to return to the theater, Disney+ is useless,” Anderle said.

“At some point Disney will have to decide whether to adapt to their cinema or service, and that’s a tough decision to make.”

In total, the Disney platforms (Disney+, ESPN+, and Hulu) have 179 million subscriptions and $4.6 billion in revenue (approximately 34,268).

Parks and commercial businesses doubled their sales to $5.5 billion (about 40,973 rupees) thanks to the reopening of all theme parks worldwide.

Disney said in a statement that “we are experiencing a reduction in operational capacity due to health restrictions.”

Disney believes that the costs of producing films and other businesses will increase as inflationary pressures are felt in the economy.