Disney + magic fades: Barclays downgrades Walt Disney three years later

File Photo: A smartphone with the “Disney” logo is displayed on the keyboard in front of the word “Streaming Service” in the picture of this photo taken on March 24, 2020. REUTERS / Dado Ruvic

October 18, 2021

(Reuters) – Walt Disney shares received a rare Wall Street downgrade on Monday as Barclays called for a bold change from media giants to reverse the slowdown in Disney Streaming Services growth.

Disney CEO Bob Chapek hinted at a slowdown in Disney + last month, with global paying subscribers in the fourth quarter “single digit” compared to the 58.5 million increase over the past three months. He said it would increase millions of people in the first half of the world.

Disney +, one of the richest portfolios of media content, was a huge hit in 2019. The hit “Star Wars” and “Avengers” franchises attracted new subscribers.

Rival streaming platforms such as Netflix Inc, Apple TV + and Amazon Prime Video take a different approach. They have invested heavily in the original content to attract subscribers.

Barclays analyst Kannan Benkateshwar said, “The company (Disney) seems to be targeting one new piece of content per week, but all content has the same franchise value and visibility. Not. “

Barclays also said that the decline in Disney + subscribers wasn’t just due to additional pull forwards when the streaming platform became popular in 2020 and sought leisurely entertainment at home. rice field.

According to Barclays, to reach its goal of 230-260 million Disney + subscribers by the end of 2024, Disney will at least double its current growth pace to the same level as Netflix. is needed.

Netflix, which plans to report quarterly results on Tuesday, had 209 million subscribers as of the end of June. Disney + had 116 million paying customers.

Disney shares, which have not been downgraded by any brokerage firm so far this year, fell about 2% in early trading.

(Report by Aniruddha Ghosh, Tanvi Mehta, Eva Mathews in Bangalore, Written by Subrat Patnaik, Edited by Shinjini Ganguli)

Disney + magic fades: Barclays downgrades Walt Disney three years later

Source link Disney + magic fades: Barclays downgrades Walt Disney three years later

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