Ballooning costs at the entertainment giant\u0027s fast\u002Dgrowing streaming division cast a shadow on strong subscriber additions.
“Disney’s streaming results are indicative of the tightrope it is walking,” said Fred Boxa, associate director at technology and management consulting firm Arthur D. Little.
Finance chief Christine McCarthy, in a call with analysts on Tuesday, said the ad tier was not expected to provide a meaningful impact to results until later in Disney’s financial year.Article content Subscriber growth in Disney+ was expected to accelerate in the second quarter, she added, a sign analysts said indicated a soft first quarter.
“As the platform aims for profitability, it’s placing some of that burden on its user base in the form of price hikes that could stall growth during a time of economic pinch,” said Mike Proulx, research director at Forrester.tap here to see other videos from our teamA weaker-than-expected full-year revenue growth forecast also dragged shares. Disney estimated a “high single-digit” percentage growth in revenue in this fiscal compared to the last, while the Street was expecting 12% growth.
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