Disney’s (DIS) streaming video subscriber growth has reportedly slowed sharply in recent months, according to internal data that The Information has reviewed. Disney stock slipped.
The report says Disney+ had little more than 110 million total subscribers late in the third fiscal quarter vs. 103.6 million in the second quarter, which missed expectations for 109 million.
Combined U.S. and Canada totals accounted for 38 million subscribers, which is up from around 37 million in early February. That means most of the growth in Disney’s streaming service is coming from India and Latin America.
Disney reported around 159 million total subscribers across its streaming services, which include Hulu and ESPN+, as of the end of the second quarter. Revenue for Disney’s direct-to-consumer business grew 59% to $4 billion in Q2.
Disney’s been aggressively expanding its streaming business with dozens of new shows, but it isn’t expected to become profitable until fiscal 2023. Disney previously estimated it would notch 230 million to 260 million subscribers by 2024. But as the pandemic wanes and more people head to theaters and other entertainment venues, streaming subscriber growth could slow.
Rival Netflix (NFLX) stock, which has also seen its subscriber growth stall recently, edged up 0.1%.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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