Disney+ Subscriber Growth Slowed on Fiscal Q4

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On Wednesday after-bell, Walt Disney Company posted the smallest rise in Disney+ subscriptions on its fiscal fourth-quarter results. 

Accordingly, it missed the Wall Street estimates across the board on its latest report. 

The growth of Disney+ subscribers slowed as it declined to $118.10 million from the analysts’ projection of 125.40 million.

At the same time, subscriber growth also decelerated at Hulu and ESPN+. 

Correspondingly, Hulu added only 700,000 users to 39.7 million, and ESPN+ rose 2.30 million to 17.1 million.

Still, during its earnings call, Disney CEO Bob Chapek restated the firm’s goal of touching 230.00 million to 260.00 million subscribers by 2024. 

Moreover, he noted that the company would ramp up content for Disney+ in the fourth quarter of 2022.

Then, its average monthly revenue per subscriber dipped 9.00% year-over-year to $4.12. Disney attributed the decline to an increased mix of Hotstar subscribers. 

Consequently, its diluted earnings per share posted at $0.37, significantly lower than the expected $0.51. 

At the same time, its revenue reduced to $18.53 billion from the forecasted figure of $18.79 billion. 

In addition, the world’s most extensive entertainment company skidded 7.07% or 12.34 points to $162.11 per share. It followed its Wednesday low of 0.38% to $174.45 per share. 

At the same time, this downturn marked the biggest one-day, post-earnings percentage selloff for the stock in 10 years.

Disney Plans to Establish its Own Metaverse

Furthermore, CEO Chapek also mentioned the current efforts of Disney in establishing its own metaverse. 

In an interview, he said that the company is preparing to take a technological leap into a virtual reality (VR) world.

Accordingly, several tech companies have already invested in this type of immersive simulated experience. 

For instance, Facebook CEO Mark Zuckerberg explained that the future of his company is currently devoted to forming a robust, three-dimensional environment. 

It would allow its users to choose digital avatars that could work, hang out and pursue their hobbies on the platform. 

Similarly, game-makers Roblox and Epic Games, and software giant Microsoft Corp work also on their own metaverses.

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