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    Disney Shares Extend Losses; Investors Fret Over Streaming Growth As Disney+ Turns Two

    Disney Shares are down 8% in heavy trading, extending the selloff that began yesterday after the media group Posted weaker than expected earnings and streaming data for the September quarter.

    Shares falling, changing hands at around $161, are affecting the broader market. Disney is one of only 30 highly selective, heavyweight stocks included in the Dow Jones Industrial Average, so a large move as of today has the effect of driving the index lower. (The DJIA is 80 points, or 0.22%, away. The broader Nasdaq, S&P 500 and Russell 2000 are all in positive territory.)

    Disney+ growth slowed for the fiscal fourth quarter, adding 2.1 million subscribers to reach 118.1 million. This is 10 million less than the previous quarter. On a call with analysts and an appearance on CNBC, CEO bob chapeco Said Dreamer is still on track to meet its 2024 fiscal year goals in large part as it pushes into new markets (it plans to double international territories by fiscal 2023) and Disney Continues to roll out fresh content based on ,

    Disney+ is gearing up for a big fall Friday — the two-year anniversary of its launch — with new details and a first look at the art and trailers for the upcoming content. shang chi And Jungle Cruise Will be available to stream tomorrow and Disney is offering subscribers a month of service for $2.

    “We wonder whether Disney+ is too narrow a product and requires too much investment in non-Disney content to increase the product’s appeal,” said analysts at MoffettNathanson.

    Wall streetrs and industry players have consistently praised Disney’s track record in successfully growing Disney+ from zero to 118 million, the question being what’s next.

    “It is acknowledged that Disney+’s growth will accelerate again when content spending accelerates again.”
    In line with the recent experience at Netflix, where the development slew is made by
    Record volume of new content finally shattered the pull-forward of subscriber epidemic
    dropped in the last few months of this year,” the firm said. Taken together, this reality brings us back to Warren Buffett’s quote above, which he used to describe the airline industry, but we think it applies to streaming as well: “The Worst Kind Business is one that grows fast, it needs
    significant capital to fuel growth, and then generates little or no money.”

    “We’re somewhat skeptical that more Star Wars/Marvel/Animated/Family content will be enough for development Disney+ viewers to parity with Netflix,” said Doug Kreutz of Cowen.

    Disney’s total revenue rose last quarter as theme parks improved and advertising returned, but still fell short of forecasts, as did earnings. Wall Street, for better or worse, is focused on laser streaming, which helped Disney stock climb to new highs last year.

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