Disney's latest quarterly update is being more eagerly awaited in some quarters than the next series of its mega-hit Star Wars spin-off The Mandalorian (see pic).
Investors certainly will be on edge after rival Nextflix’s dismal update cast a big shadow over the hitherto untouchable streaming sector, with more than a few looking to Disney to lighten the gloom.
Confirmation that it remains on track to be close to 260mln Disney+ subs by September 2024, and that the streaming boom was not just a lockdown wonder, is what investors want to hear.
Consensus estimates are for Disney+, the group’s streaming service, to have added around 5.3mln subscribers in the second quarter taking the total to 135.1mln
Forecasts for the third quarter will be just as important and the consensus number here is 11mln new additions.
By contrast, Netflix saw a 200,000 decline in its latest quarter and has responded by attempting to clamp down on password sharing and launching a cheaper ad-supported service.
Disney has already announced it will launch a cheaper version of Disney+ with ads later this year.
Of course, Disney also has a theme park operation that should be booming at present, but against that has managed to get itself embroiled in a political row in Florida over the “Don’t Say Gay” bill.
As a result, it has faced a concerted assault on the company from Far-Right organisations and their supporters who have called for a boycott of the company, which might be having an impact on visitors.
Shares were up 1.9% today at US$109.83 ahead of the numbers, having shed 40% of their value over the past year.