On Wednesday, investors will examine Walt Disney Co.’s (DIS.N) streaming TV business, which is re-evaluating the media industry’s dramatic move from cable television to online video subscriptions.
Netflix Inc (NFLX.O), the streaming video pioneer, shocked Wall Street last month when it revealed it had lost members in the first three months of the year and predicted additional defections through June.
Netflix’s stock has dropped 71% this year, while Disney’s stock has dropped 31%. After the markets close on Wednesday, the Mouse House will disclose its quarterly profits report.
Forrester researcher Mike Proulx stated, “We’ve reached a point of streaming saturation.” “Consumers can only devote so much time and money to the ever-growing number of streaming service possibilities.”
The Disney+ streaming service continues to expand. According to FactSet projections, it will have added 5.3 million new customers through March, bringing the total to over 135.1 million.
Analysts predict that new sign-ups will increase to roughly 10.8 million from April to June.
Disney stated in February that by the end of September 2024, it intends to have between 230 million and 260 million Disney+ users.
To achieve the low end of that range, the corporation needs to add about 9.1 million new subscribers every quarter, or 11.8 million to reach the high end. Growth may vary from quarter to quarter, according to Chief Executive Bob Chapek.
According to Forrester polls, viewers were impressed by Disney’s original programming from its diverse portfolio of entertainment brands, albeit some believed it was outdated.
According to him, Disney has been addressing this by introducing ABC programming to Disney+, and the highly anticipated “Obi-Wan Kenobi” series will premiere on May 27. Following COVID-related production setbacks, Chapek stated that Disney will accelerate the pace of new programming before the end of the year.
