The Disney+ streaming service is in trouble just two years after its high-profile launch, as subscriptions have fallen short of expectations.
Disney announced this week that it has reached 118.1 million global Disney+ subscribers, disappointing Wall Street analysts, who had reportedly expected around 126 million. Disney shares plunged as much as 8 percent on Thursday following the announcement but have since recovered some of their losses.
The bad news has prompted Disney to cut prices. The company is offering a promotional one-month subscription for just $1.99, and launched a publicity blitz on Friday — “Disney+ Day” — to promote new and upcoming streaming titles, including the movie sequel Hocus Pocus 2 starring Bette Midler and a series based on The Spiderwick Chronicles.
Disney+ has released some popular hits including The Mandalorian and WandaVision. But consumers have been turned off by the streaming service’s embrace of wokeness and left-wing politics. Disney+ is the home of the Fauci documentary, which paints a glowing picture of Dr. Anthony Fauci and even attempts to absolve China of its responsibility in the global coronavirus pandemic.
The “kid-friendly” service also hosted an LGBTQ Pride concert this year starring drag queen Nina West, with performances of popular Disney songs re-imagined with LGBTQ themes.
Like many Hollywood studios, Disney is betting big on streaming, hoping subscription dollars will propel corporate growth into the foreseeable future. Disney CEO Bob Chapek expects Disney+ to reach 230 million to 260 million subscribers by 2024.
In addition to the Disney+ subscription miss, the company also missed earnings and revenue estimates for the fiscal fourth quarter, helping to push the stock lower.
Disney stock is now trading in bear territory, having fallen 20 percent from its March peak, according to a report from CNBC. The media giant is cutting loose other underperforming media properties, such as ESPN Classic and ESPN 2.0, earlier this month.
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