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.
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Pirates & Princesses (PNP) is an independent, opinionated fan-powered news blog that covers Disney and Universal Theme Parks, Themed Entertainment and related Pop Culture from a consumer's point of view. Opinions expressed by our contributors do not necessarily reflect the views of PNP, its editors, affiliates, sponsors or advertisers. PNP is an unofficial news source and has no connection to The Walt Disney Company, NBCUniversal or any other company that we may cover.