LOS ANGELES: Disappointing growth of Walt Disney Co’s namesake streaming service on Thursday overshadowed better-than-expected overall profits, driving down shares of the entertainment company.CEO Robert Chapek said that movie and television shows were resuming normal production and new offerings would help bring in new customers to Disney+, ESPN+, Hulu and Hotstar.
“ growth is significantly decelerating as the initial pandemic boost has waned,” eMarketer analyst Eric Haggstrom said. “Given Disney’s content investments, subscriber growth should return strongly once this short-term turbulence ends.” The average monthly revenue per paid subscriber for Disney+ decreased from US$5.63 to US$3.99, the company said, due to the launch of the lower-priced Disney+ Hotstar in overseas markets.Disney plans to launch Disney+ in Malaysia on June 1 and in Thailand on June 30, executives said on a call with analysts.
Operating income at Disney’s media division rose 74% from a year earlier to US$2.9 billion as profit rose at domestic and international TV networks. Chief Financial Officer Christine McCarthy said reservations at Disney’s US parks were strong, “demonstrating the strength of our brands as well as growing travel optimism”.
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