Connect with us

Hi, what are you looking for?

News

Disney’s 2021 Fourth Quarter Financial Report Isn’t So Magical

Tinkerbell’s magic wand can’t seem to spark Disney these days and Disney+ is the reason why.

Disney+ Devices

The success of most large companies rests with steady growth and how that manifests in annual and/or quarterly financial reports. Depending on what is contained in those reports affects how investors see the direction of the company. Currently, it looks like Disney is veering off in the wrong direction.

The Disney+ Effect

Disney recently announced its 2021 fourth-quarter earnings report (through October 2, 2021) and it looks like Disney is hitting some roadblocks with its Disney+ streaming service

According to Disney’s report, although the Disney+ streaming service added 2.1 million new subscribers, that is far short of the 9.4 million that Wall Street had predicted. That is also a big decrease from the 12.6 million Disney+ added in the 3rd Quarter of 2021. Fewer new subscribers mean less revenue growth.

Disney+ Logo

Of course, what is interesting is that Disney’s total revenue from all sources actually went up 26% to $18.5 Billion in the fourth quarter, but was below what analysts had predicted.

As a result, with lackluster Disney+ subscriber growth and other factors, Disney’s stock dropped over 5% almost immediately after the report was made public and for the short term appears to be on a downward trend

The Netflix Juggernaut

Despite a huge library of quality content, as well as original content based on its Marvel, Star Wars, and Pixar properties, Disney+ still only has about half the subscriber base of Netflix which has more than 200 million subscribers and added 4 million during the 4th quarter of 2021. 

Disney+ Originals
Disney+ Originals

One problem Disney has is that Netflix is feverishly spending billions of dollars on content and releasing sometimes several new original content offerings to its service every week. Although Disney is spending a lot on original content, those offerings are not coming out at a fast pace.

One thing to watch out for is Netflix adding video game streaming as part of its offerings.

Netflix is also in expansion mode and recently announced that it has made an offer on 300 acres of property on the Jersey Shore (down the street from Editor-in-Chief Ian White’s house) and is planning on building another major television/movie studio to keep up with all of its forthcoming programming. Netflix plans to beat Disney at its own game by attracting the best screenwriters, show runners, and acting talent to its stable.

Disney+ TV Menu

Streaming Demand Is Slowing

Of course, the big elephant in the room isn’t just Netflix being dominant over Disney and other streaming services. 

The fact that there are so many subscription streaming services available, the cost of subscribing to them all is almost or as much as the cable or satellite TV that consumers left for the “lower-cost” of streaming. This means that unless the potential subscriber pie expands, the streaming services are competing for viewers that may be increasingly cash-strapped to pay for more services.

Advertisement. Scroll to continue reading.

Here is a further breakdown of some of what is known about subscription numbers for several other streaming services beyond Disney and Netflix as of the end of 2021:

Amazon Prime Video: 175 million.

Apple TV+: The number of declared subscribers is not officially known but is estimated to be less than 20 million.

NBC/Universal Peacock: 54 million total, no quarterly growth numbers available.

Viacom/CBS 

  • Paramount+: Over 47 million  (4.3 increase)
  • Pluto TV: 54 million (2.1 million increase)

WarnerMedia HBO/HBO Max

  • 69.4 million global subscribers (up 1.9 million)
  • 45.2 million domestic subscribers (down 1.8 million)

Discovery+: 20 million (up 3 million)

NOTE: HBO Max and Discovery+ will be officially combined starting sometime in 2022 under the Discovery brand name.

UPDATE 4/8/2022: Warner/Discovery Merger Finalized: What Comes Next

Additional Factors Affecting Streaming Growth

Other factors affecting the slowing of streaming growth are now that COVID restrictions are easing, people are slowly returning to movie theaters, sporting events, concerts, and restaurants which means less at-home TV viewing.

Possible Encouraging Signs at Disney

One encouraging sign for Disney is that park attendance is slowly returning and may soon reach pre-pandemic levels. However, will that increased revenue be enough to counteract any continued slowdown in  Disney+ subscriber growth? 

Maybe Disney+ Day, the limited time of $1.99 for one month and other offers, the introduction of o the IMAX Enhanced viewing option, and a more aggressive expansion into international markets will jumpstart subscriber numbers in time to provide investors with more encouraging news beginning with the first quarter of 2022. 

Advertisement. Scroll to continue reading.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

New Products

Audiolab 7000 Series Hi-fi Components

Integrated Amps & Stereo Receivers

Delivering more power, improved sound quality, and better ergonomics, the Audiolab 7000 Series looks rather intriguing.

LG WebOS Hub with Apple TV LG WebOS Hub with Apple TV

HDTV 4K & 8K TV

LG's WebOS Hub is expanding its reach into new markets and with a range of new platforms including Apple TV, Apple Music, HomeKit, and...

Philips Fidelio FB1 and FW1 Soundbar Lifestyle Philips Fidelio FB1 and FW1 Soundbar Lifestyle

New Products

The number of soundbars with Dolby Atmos increases with the latest entry from Philips. However, this thing packs a lot of other features for...

Cambridge Audio AXN10 Network Player Lifestyle Angle Cambridge Audio AXN10 Network Player Lifestyle Angle

Digital Music Systems

Cambridge Audio has introduced two new affordable network players priced below $600 that offer everything you need to enjoy hi-res streaming.

Philips TAA7607BK Bone Conducting Earphones Philips TAA7607BK Bone Conducting Earphones

New Products

The IP66-rated Philips A7607 Wireless Sports Headphones offer Bluetooth support and LED safety lights for visibility at night while walking or running.

2023 Sony STR-AZ1000ES A/V Receiver 2023 Sony STR-AZ1000ES A/V Receiver

A/V Receivers & Preamp/Processors

After a five year hiatus, Sony is back with new A/V receivers optimized for home theater and immersive surround sound.

You May Also Like

News

Netflix is rolling out a new Spatial Audio feature powered by Sennheiser's AMBEO technology that promises to improve your viewing and listening experience.

HDTV 4K & 8K TV

Owners of Vizio Smart TVs have some new remote control and mobile app features to take advantage of for 2023.

News

Although Netflix had unexpected subscriber gains in the 4th Quarter of 2022, its Founder and Co-CEO, Reed Hastings is voluntarily stepping down.

News

2022 was an interesting year for video streaming services, but 2023 may be downright chaotic, especially for viewers.

Articles

Netflix Fort Monmouth Studios is moving ahead in 2023 and that's huge news for the TV and movie industry in New Jersey.

Articles

2022 was a wild year and we have some thoughts on what transpired and where we are headed in the months ahead.

Articles

The tech titans couldn't have built their empires without songs -- and now they are destroying the cultural ecosystem that made them rich.

Ask an Expert

Everything you need to know about Smart TVs in 2022 and why they are not all the same.

Advertisement

ecoustics is a hi-fi and music magazine offering product reviews, podcasts, news and advice for aspiring audiophiles, home theater enthusiasts and headphone hipsters. Read more

Copyright © 1999-2023 ecoustics | Disclaimer: We may earn a commission when you buy through links on our site.



SVS Bluesound PSB Speakers NAD RSL Speakers Crutchfield ProjectorScreen Focal Naim Audio Cambridge Audio