Disney+ Subscriber Growth Slows, Company Misses Wall Street Expectations

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The streaming service now has 118 million subscribers, up only 2 million from last quarter.

“Suffice it to say, our efforts to date are merely a prologue to a time when we can connect the physical and digital world even more closely, in our own Disney metaverse,” Chapek said.

For now, though, the direct-to-consumer business remains the most important revenue driver for the company, with revenue of $4.56 billion, up 38 percent from a year earlier. Disney’s linear networks unit, which includes ESPN and ABC, hit $6.7 billion, down 4 percent from a year ago. The company’s theme parks and experiences division up more than 99 percent to $5.45 billion, as theme park attendance at Disneyland and Walt Disney World continued to normalize.

The lower results at the linear networks “was due to the shift of sports programming costs from fiscal 2020 into fiscal 2021 as a result of COVID-19, partially offset by higher sports advertising revenue,” the company said. As previously forecast by Chapek, Disney+ subscriber growth slowed in the quarter, with the service hitting 118 million subscribers, an increase of 2 million. Disney

 

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