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Disney, the world’s largest entertainment company, said yesterday that its Disney+ streaming service actually grew slower than planned in the most recent quarter, even as pandemic headwinds began to bite the cinemas and keep more people at home.
Disney+ has 118 million users globally, but experts thought millions more would sign up, resulting in a shortfall that caused the entertainment conglomerate’s share price to fall in after-market dealings.
On an earnings call, Disney Company CEO Bob Chapek told analysts that the two-year-old service has experienced some major challenges in acquiring new series and films. “Obviously, we are only in year two of the Disney+ launch and the hunger for content for the service is extraordinary,” he remarked, “and when you have that happen at the same time that you have a pandemic and you have to shut down production, that is not a good combination.” Chapek also added that Disney has “made great strides in reopening our businesses while taking meaningful and innovative steps in Direct-to-Consumer and at our Parks, particularly with our popular new Disney Genie and Magic Key offerings.”
CNBC reported today at the stocks fell to the worst day in over a year, plummeting 7% in what appears to be Disney’s worst session since June 2020, after the media giant reported the subscriber growth slowdown in its streaming service.
Following their pandemic-caused production delays, Netflix has committed to considerably increase its original content lineup, while disappointing growth at Disney+ occurred as the firm simultaneously attempted to re-establish momentum in its tourism and theme park operations, which had also been harmed by the epidemic.
With the studios’ release of “Mulan” back in 2020, “Black Widow” and “Jungle Cruise” this summer, cinemas and actors like Scarlett Johansson complained about the loss of revenue for them all. Some investors believe that Disney’s contentious policy of releasing some films simultaneously in cinemas and online, with an extra fee for platform members, is harming the company.
Disney stock fell 4% by close of trading Wednesday. According to this week’s report, Disney’s investors are disappointed with the average monthly revenue per Disney+ subscriber falling 9% year-over-year. The company blamed the decline on their offering of cheaper subscriptions in some markets, such as India and Indonesia.
Matt McGloin of Cosmic Book News reported that insiders are saying the studio is suffering from the woke direction of the properties…
“prior to the release of today’s investor report, known Disney leaker WDW Pro (via YouTube) claimed Disney Plus subscriptions were stale and that Marvel is to blame, with the rumor offering that Disney is going to focus on building Disney Plus with its Star Wars brand (as The Mandalorian has been a huge success for Disney Plus) which involves the recent news of Patty Jenkins Rogue Squadron getting shelved:
“Filoni essentially runs everything Star Wars now. Burbank is thrilled with Boba Fett’s response. They need Disney Plus growing, and Filoni seems to know how to do it. Not even Marvel is growing Disney Plus. Disney Plus equals stock value going forward.”
So WDW Pro’s information adds up as the Disney investor report confirms subscriptions haven’t been all that good, that Marvel hasn’t been an impact, and that the stock price did indeed drop.
We can also add that we see Kevin Feige’s woke approach – the replacement of original characters and/or the promotion of a politically correct agenda at the expense of those original characters and the storyline – is a big fail which is simply proven by the numbers.
Marvel is going the exact same route as Star Wars: The Last Jedi, as following the release of The Last Jedi, interest in Star Wars – and more importantly dollars – dropped, which, just like in today’s report, played out in all the Disney investor reports following The Last Jedi‘s release.”
Disney going woke is not surprising, but are they too big to go broke?
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