Disney + added 7.9 million subscribers in the last quarter to a total of 138 million worldwide, the company announced on Wednesday, helping it avoid the slowdown that has recently reduced the number of subscribers. rates on Netflix.
Like most advertising companies, Disney’s product market plummeted after Netflix announced last month that it had lost 200,000 subscribers in the first quarter of the year and that it expects to lost another two million this quarter. After years of praising companies for losing millions of dollars in streaming, investors are now scrambling to find ways to make a profit.
The release of movies like Pixar’s “Turn Red” helped Disney + popular users in the first quarter, which ended on April 2. Disney products fell 3 percent. In the market after the income is reported.
Disney’s gains are good news for Bob Chapek, the director, who has been embroiled in controversy over public relations issues arising from the company’s response to Florida school policy. laws that, among other things, restrict classroom discussions about homosexuality and gender. (Disney is the state’s largest employer.)
The company initially refused to speak out against the bill to the public but withdrew itself after an internal protest. Chapek later announced the law, which angered the authorities, including the Florida Gov. Ron DeSantis. Last month, Republican lawmakers in Florida repealed a 1967 law that allowed Walt Disney World to function as its own government. In a fit of rage, Geoff Morrell, who joined Disney in January as its chief executive of government relations and communications, resigned last month.
Disney revenue rose 23 percent year-on-year to $ 19.2 billion, but missed analysts’ expectations. Disney said it was affected by the decision to pull some content back from other vendors in favor of its own channel, which means a $ 1 billion reduction in revenue. License revenue has become an integral part of the business to grow its direct-to-consumer business.
Disney reported earnings of a share of $ 1.08, missing analysts ’expectations of $ 1.17.
Disney theme parks have been buzzing back through the last year, when the Covid-19 spread all over the place. Revenues in the division doubled compared to the same period last year, with the new lane-crossing traffic increase.
As streaming services seek more consumers, India is becoming an important market. Deep media companies are preparing to bet on the right to broadcast football matches from the popular Indian Premier League. Disney is now right to announce the release of its Hotstar show, which it received in its 2019 megadeal with 21st Century Fox. Losing these rules can lead to a break. However, Mr. Chapek said Disney can reach its target customers even if it does not adhere to those rules.
On a phone call after the earnings announcement, Mr. Chapek said Disney would eventually lead to more controversy over the move of major sports to ESPN + streaming services. The revenue generated by the benefits of the ESPN cable channel now makes it irreplaceable, so the company has taken measures for streaming games, Mr. Chapek said.
Mr. “What we are doing is putting one foot on the dock if you want, and one foot on the boat,” Chapek said.
Mr. Chapek also responded to questions from analysts about the lack of new Disney movies that have opened in Chinese theaters, which the company has had mixed records in recent years. Mr. Chapek said that Disney movies performed well without the help of moviegoers in China, pointing to the success of “Doctor Strange in the Multiverse of Madness.”
“We strongly believe that even without China – if it should be if we still have a hard time getting names there – that it would never limit our success,” Mr. Chapek said.