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Disney to offer streaming estimation following Netflix’s shortfall

Disney to offer streaming estimation following Netflix’s shortfall
Disney to offer streaming estimation following Netflix’s shortfall

Disney’s streaming unit is now under scrutiny from investors as the company tries to keep up with the rapid evolution of video streaming services. This comes after Netflix Inc stunned Wall Street last month when it revealed that it lost subscribers in the first quarter, warning that it would lose more customers through June.

Since then, Netflix’s shares have fallen by more than 70% while Disney’s shares have dipped by 38%. According to experts keeping track of the business trends, the streaming services have reached a saturation point, with consumers more inclined on using a single service instead of spending time and money on different options.

Despite the recent decline in the stock price, Disney+ is found to be still growing. The streaming service has managed to gain about 5.3 million subscribers, with more expected to be added during the second half of this year.

Disney has previously stated that it would reach 260 million subscribers by the end of 2024. To reach this goal, the company intends to average around 9 million new subscribers per quarter.

In this context, experts claimed that viewers were impressed by Disney’s original programming, although they felt that the company has not updated its offerings enough.

Disney addressed this issue by adding ABC programming to its streaming service and is yet to launch its much-awaited “Obi-Wan Kenobi” series on May 27. The company is estimated to increase the pace of new programming by year’s end.

But other analysts are skeptical about streaming sector growth, estimating a drop in Disney’s stock price by USD 20 to USD 130. The company’s streaming business model is claimed to be not as attractive as it was previously thought.

Disney is expected to report earnings of around USD 1.19 per share for the March quarter, which is up from the previous year’s earnings of USD 110. The company’s parks division is also likely to continue recovering from the effects of the COVID-19 production, with the segment expected to grow at a faster rate in the long run.

Source Credits –

https://tech.hindustantimes.com/tech/news/disney-to-provide-next-streaming-gauge-after-netflix-retreat-71652178681039.html

About the author

Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.