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Disney offers streaming service discount to stem user slowdown

Published by

July 25, 2024 2:51 PM
(GMT+2)

Walt Disney (NYSE:DIS), a family entertainment company, will be offering a month of Disney+ for $1.99 instead of its general charges of $7.99 for its streaming services in the United States, in an attempt to stem a slowdown in paid user growth.The promotion will run from Nov. 8 until Nov. 14 for new and eligible returning subscribers in the United States and some other countries, Disney said in a statement.Disney has seen remarkable subscriber growth on the streaming landscape since its launch in 2019 but has since tussled with the likes of Netflix and Amazon Prime Video for space. As part of the promotions marking the launch of Disney+ two years ago, the company said it would provide other offers, including an early entry into its theme parks for eligible subscribers.Disney+, which has “Star Wars” and “Avengers” franchises in its portfolio, picked up more new subscribers during the COVID-19 pandemic as theater closures prompted more people to turn to digital streaming to quench their entertainment needs.WHAT INVESTOR ANALYSTS ARE SAYINGThe recently hinted slowdown in subscriber growth in Disney+ led to a rare Wall Street downgrade. Moreover, investor analysts have warned subscriber forecasts for 2022, 2023, and 2024 have been cut to 164 million, 210 million, and 235 million, respectively.While the company has posted revenue growth of 28% to $18.8 billion, Barclays analysts have indicated that slowing growth and the fact that Disney+ produces far less new content than Netflix are reasons for skepticism.Disney is expected to report its fiscal fourth-quarter earnings of $0.44 per share on Wednesday. It represents year-over-year growth of over 320% from a loss of -$0.20 per share seen in the same period a year ago.Click Here to learn more about stock trading.References: https://www.fxempire.com/forecasts https://www.investing.com/news/stock-market-news https://news.sky.com/story

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