The fall hasn’t been kind to Disney’s streaming ambitions. Disney+ added just 2.1 million subscribers in its fourth quarter, giving it a total of 118.1 million customers. That’s in line with the company’s already cautious estimate (in the “low single-digit millions”) and 60 percent more total customers than a year earlier, but well below what some analysts expected. CNBC noted that StreetAccount predicted 9.4 million new users this quarter.
Disney’s streaming-oriented Direct-to-Consumer division also lost $630 million (versus $374 million a year earlier) due in part to extra spending on production, marketing and “technology costs.” These were expected due to the growing service, but they suggest Disney+ isn’t yet a net positive for Disney two years after launch. During an earnings call, company chief Bob Chapek was still confident the company would hit subscriber targets (over 230 million users by September 2024) and turn a profit.
The media giant had warned of “headwinds.” While it didn’t initially shed much light on the problems …
