Disney CEO Bob Chapek said, that Disney+ streaming service subscriber growth will slow down due to 'some hurdles'.
Due to the spread of the COVID-19 delta strain, the company faced a disruption in content production. For the same reason, sports competitions in India have been temporarily suspended., which is broadcast by Disney. According to Chapek, there won't be much new content in the fourth quarter, therefore, the number of subscribers will grow slightly, for several million.
CEO's forecast below analysts' expectations. So, Deutsche Bank predicted 13 million subscriber growth in the fourth quarter.
Disney+ subscribers grew by 12 million last quarter, from 104 to 116 million. But the amount of revenue from one subscriber fell by 10% comparing with the previous year. Disney launches service in India, Thailand, Indonesia and Malaysia, where the subscription cost is much lower.
According to company forecasts, 230-260 million subscribers to Disney+ by 2024. While unprofitable service is the main point of growth for Disney's business, that is why investors and analysts are following its development so closely.
After Chapek's statement, Disney shares fell by 4,2%, to 171,2 $. Since the beginning of the year, the company's shares have fallen in price by 3,7%.
