Still, Disney made its bet on streaming, and just like Disney+, so did the rest of Disney. If the service is struggling to attract subscribers, Wall Street doesn’t really care how many people have bought Baby Yoda plush dolls or tickets to Disney World.
Disney will also face the possibility of disappointing the market like Netflix did last month with its own lackluster earnings reports. Netflix’s stock fell 20% when it announced it had 221.8 million subscribers worldwide, but forecast growth of just 2.5 million for the next quarter.
Still, there are reasons to be optimistic about Disney.
The service has been full of popular content over the past few months. There was “Hawkeye,” Marvel’s new series about the avenging archer, and “The Beatles: Get Back,” an eight-hour documentary about the recording of Peter Jackson’s band’s latest album.
Hit movies like “Shang-Chi and the Legend of the Ten Rings” and “Jungle Cruise” have also been added to the service. Later in the quarter, so did the animated musical “Encanto” and “The Book of Boba Fett,” a new series in the Star Wars franchise.
Jessica Reif Ehrlich, analyst for Bank of America, expects Disney+ to report that it added seven million subscribers this quarter due to this type of content. Still, Ehrlich notes that the service may need to continue expanding its offerings in order to attract even more subscribers.
“With the success of ‘The Beatles: Get Back’, we wouldn’t be surprised if [Disney] diversifying their content production beyond their traditional brands (e.g. Marvel, Star Wars, Pixar and Disney) to broaden the reach and appeal of the service,” she wrote in December.