The entertainment giant plans to expand its streaming offerings by year's end with a new app that combines the family-friendly Disney+ and the Hulu general entertainment service, Chief Executive Bob Iger said. Revenue hit $21.82 billion, slightly above analyst projections of $21.79 billion. Overall, Disney's diluted earnings per share came in at 93 cents, meeting the consensus forecast of analysts polled by Refinitiv. Inge Heydorn, a fund manager at GP Bullhound, said a question for investors is: "are the trade offs from lower marketing costs leading to lower subscribers?" "Striking a fine balance between customer acquisition versus financial performance is no easy feat." Still, investors appear "fixated on subscriber net additions," said PP Foresight analyst Paolo Pescatore. Wall Street has been pressuring media companies to make profits from the billions of dollars they have poured into streaming in recent years to compete with Netflix Inc (NFLX.O). Disney also shed 300,000 customers in the United States and Canada, where it raised prices last December.Īnalysts had expected Disney would add more than 1 million customers in the quarter, Insider Intelligence analyst Paul Verna said. Most of the defections came from the Disney+ Hotstar offering in India after it lost streaming rights to Indian Premier League cricket matches. The division ended the quarter with an operating loss of $659 million, compared with $1.1 billion in the prior quarter.Īt the same time, total subscribers to the flagship Disney+ service dropped by 4 million to 157.8 million. Shares of Disney fell 4.4% in after-hours trading.Ī price increase and reduced marketing expenses helped improve the performance of Disney's streaming unit from January through March. LOS ANGELES, May 10 (Reuters) - Walt Disney Co (DIS.N) reduced streaming losses by $400 million from the prior quarter but also shed subscribers, the company reported on Wednesday as quarterly earnings landed in line with Wall Street expectations.
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