Bob Chapek, CEO of Walt Disney, revealed that the introduction of its OTT Star+ in Latin America is growing slower than anticipated. Along with the expiration of subscriber offers for its platforms in India, the slow pace in Latin America is beginning to impact its global user growth, which in the current period would be in the “low-single-digit millions of subscribers“, he explained.
The Disney+ streaming service currently has 116 million subscribers worldwide. But after starting with an accelerated increase, analysts now estimate that by the end of the fourth fiscal quarter, which is about to end, the number will only rise to 125.7 million.
On September 20, the company’s shares fell 5.4% to USD 169.03 and 1.4% total for the year. “We’re very bullish and confident about our long-term sub growth. But we’re going to see a little bit more noise than I think maybe the Street expects in terms of our ultimate projections quarter-to-quarter“, Chapek said.
As a strategy to recover from Star + growth stagnation, Disney announced that it will seek to be more “aggressive” with its presence at sporting events, and is even considering signing additional partnerships for its ESPN brand.