Walt Disney Co has announced that its streaming service Disney+ added fewer users last quarter than Wall Street predictions, after enjoying a meteoric start.
Disney+ added just 8.7 million subscribers in the Jan-March quarter, 5.7 million short of expectations.
The service now sits at 103.6 million subscribers, passing the one-million mark in early March.
This comes as the world begins to open up after COVID-19, and mirrors Netflix’ own sluggish quarter after booming during the pandemic. While this will impact additional subscribers to Disney+, it will also benefit the company, as the Disney Parks, Experiences and Products segment will dramatically pick up.
“We’re pleased to see more encouraging signs of recovery across our businesses, and we remain
focused on ramping up our operations while also fuelling long-term growth for the Company,” said Bob Chapek, CEO of The Walt Disney Company.
“This is clearly reflected in the reopening of our theme parks and resorts, increased production at our studios, the continued success of our streaming services, and the expansion of our unrivalled portfolio of multiyear sports rights deals for ESPN and ESPN+.”