Disney struggles – streaming business disappoints

Released on 11.11. 2021

  • The logo of “The Walt Disney Company” appears over a trading post on the floor of the New York Stock Exchange. Photo: Richard Drew

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After heavy losses in the Corona crisis, Disney seemed to be back on track. The amusement parks are open again, but there are new setbacks. That doesn’t go down well with investors.

Burbank (dpa) -The US entertainment giant Walt Disney performed worse than expected in the most recent fiscal quarter – especially in the important streaming business.

In the three months to the beginning In October, revenues grew by percent to 18, $ 5 billion (16, 1 billion euros), as the group announced on Wednesday after the US market closed. Experts had expected higher revenues. The share initially reacted after the trading session with significant price drops.

Disney’s quarterly profit also fell with the bottom line 159 Million dollars relatively modest. A year ago, the balance sheet showed a loss of 214 million dollars, but now Disney’s amusement parks and holiday resorts are closed due to the pandemic back in operation. The streaming business for the Disney + video service was a particular disappointment for investors. In view of the lack of film and series hits, only 2.1 million subscriptions were added – significantly fewer than expected.

Disney is suffering from the corona crisis

Disney + started with a lot of hype about two years ago as a Netflix hunter and, thanks to successful shows like “The Mandalorian” from the “Star Wars” universe, recorded rapid growth in the initial phase. But in the end it didn’t go so smoothly. At the end of the quarter, Disney + had millions of paying users worldwide 118, so Netflix is ​​a long way off. The market leader in the streaming business had increased its subscriber number in the most recent quarter by around 4.4 million to a total of just under 214 million.

Disney admitted that the business continues to suffer from the consequences of the Corona crisis. Production delays and fewer premieres limited the availability of film content. Meanwhile, lower advertising income and falling customer interest are burdening the classic cable TV division. These include the sports broadcaster ESPN, which is very important for the group but has been suffering from subscriptions for a long time. Disney’s theme parks posted strong growth, albeit based on the previous year’s level, which was very weak due to the Corona crisis.

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