Yesterday was the Walt Disney Company’s second-quarter earnings call. Ahead of that call numbers were posted for the company, and while there was some good news regarding theme park numbers and some other things, investors focused on the subscriber loss.
Disney has lost subscribers for two quarters in a row now. Analysts expected the company to hit 163.7 million subscribers in Q2, but instead, they came in at 157.8, down from 161.8 in Q1.
Disney CEO Bob Iger tried to spin the losses and focus on other topics like their success with cutting jobs and restructuring or raising the price of ad-free Disney+ just months after they initiated the cost. However, investors are seemingly focused on the loss as Disney stock started to decline yesterday.
Some believe that Disney is gaining revenue from price hikes and layoffs, but it’s balancing out the subscriber losses for Disney+. Without subscriber growth, it’s all dependent on cuts and price hikes.
Today, before the stock market bell, the stocks were down from $101.14 to $96.30.
Of course, that can change up or down as soon as the market opens. But the losses and the fiasco in Florida seemingly aren’t encouraging investors. If Disney starts increasing prices and charges on guests for streaming and theme parks, they might see people pull away.
Time will tell.
What do you think? Comment and let us know!
Pirates & Princesses (TM) (Stylized as PNP) is an independent, opinionated News and Information site focused on Travel, Entertainment, Fashion, the “Geek Girl” Lifestyle, and more. We focus heavily on Walt Disney World, Disneyland, Universal Orlando Resort, and other themed entertainment and travel destinations. Our news staff includes former theme park and entertainment industry employees, journalists and dedicated pop culture and theme park enthusiasts. Opinions expressed by contributors do not necessarily reflect the views of this site, our affiliates or our sponsors.