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Tom Hiddleston plays the role of Loki in the Disney + series “Loki”.
Disney
Disney CEO Bob Chapek said on Tuesday that growth in his company’s streaming services had “hit headwinds” over the coronavirus, causing shares to fall by more than 3%.
Disney expects to add “single-digit millions” of streaming subscribers in the fourth quarter, Chapek said. Disney 3.33% at 3:40 p.m. ET. New York Time after Chapek’s comments at the Goldman Sachs Communacopia virtual conference.
Chapek said “partner mobilization” in Latin America to push Disney’s new Star + streaming service, the Covid-related suspension of the Indian Premier League, whose games are broadcast on Disney’s Hotstar, and production delays by the delta variant all hurt the number of subscribers in the fourth quarter.
“We’re going to see a little more noise than maybe the Street projects quarter over quarter,” Chapek said. “The resurgence of the Covid and the delta has impacted some of our productions. “
Chapek’s forecast is significantly lower than some analyst estimates. Deutsche Bank analyst Bryan Kraft had forecast Disney + net additions of around $ 13 million in the quarter.
Global production delays will be “very short-term,” Chapek said. But he acknowledged that there wouldn’t be as many new issues in the fourth quarter “as we might have expected,” which will affect subscriber growth.
Disney has forecast 230-260 million Disney + subscribers by 2024. Disney announced in August that it has 116 million Disney + subscribers.
Chapek warned investors that quarter-over-quarter growth “is not linear” and that some volatility is expected. Nonetheless, he remained confident in Disney’s long-term growth prospects.
Correction: This story has been updated to reflect when Disney shares fell.
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