Walt Disney shares fell in early trading Friday after the entertainment giant’s streaming service posted disappointing quarterly growth.
Subscribers to Disney+ totaled over 103 million as of early April, but that was nearly 6 million short of Wall Street’s targets. And the average monthly revenue per paid subscriber fell.
Disney+ had benefited from a streaming boom last year from consumers stuck at home amid the health crisis. Analysts say the slow subscriber growth was a speed bump, saying a slate of superhero films and sci-fi thrillers will attract new fans.
CEO Robert Chapek said new offerings would help lure customers to Disney’s various streaming services. The company also plans to launch Disney+ in Malaysia and Thailand in June.
The weak streaming results overshadowed the company's strong profit growth. Adjusted earnings crushed analysts’ expectations.
Profit rose at its TV networks while its theme parks unit posted an operating loss. But the company reopened Disneyland in California in late April, and Disney says reservations at its U.S. parks were strong.