{"id":508376,"date":"2021-05-14T15:06:12","date_gmt":"2021-05-14T19:06:12","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=508376"},"modified":"2021-05-14T15:06:14","modified_gmt":"2021-05-14T19:06:14","slug":"disney-stock-tanks-as-subscription-numbers-plummet-in-second-quarter","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/disney-stock-tanks-as-subscription-numbers-plummet-in-second-quarter\/","title":{"rendered":"Disney Stock Tanks As Subscription Numbers Plummet In Second Quarter"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fdisney-stock-tanks-as-subscription-numbers-plummet-in-second-quarter%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=508376&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/05\/GettyImages-1187547992-1200x800-1.jpg\" class=\"ff-og-image-inserted\"  style=\"display:none\"><\/div>\n<p><span>Could it be the Gina Carano effect?<\/span><\/p>\n<p><span>In a second quarter earnings call, Disney CEO Bob Chapek<\/span> <a href=\"https:\/\/www.fool.com\/earnings\/call-transcripts\/2021\/05\/14\/walt-disney-dis-q2-2021-earnings-call-transcript\/?source=iedfolrf0000001\"><span>revealed<\/span><\/a><span> that earnings came in stronger than anticipated for the fiscal period that ended on April 3, with most divisions, including theme parks, outperforming expectations. Yet despite this good news, the stock tumbled more than 4% in after-hours trading on Thursday. <\/span><\/p>\n<p><span>Why? Because one key sector underperformed forecasts by an alarming degree: Disney+\u2019s subscription rate.<\/span><\/p>\n<p><span>Chapek announced that the service currently claims 103.6 million paid subscribers. Given that the platform had already crossed the 100 million mark by March, analysts had expected that number to be closer to 109 million.<\/span><\/p>\n<p><span>Chief Financial Officer Christine McCarthy said that estimate was always overly optimistic and stressed that the company hit its internal goal of 100 million subscribers for the period. \u201cWe reached that milestone in early March, so we added subs at a faster pace in the last month of the second quarter than we did in the first two months,\u201d McCarthy told investors, adding, \u201cand that was despite no major market launches, a price increase in [Europe, the Middle East, and Africa], and a domestic price increase per the end of the quarter.\u201d<\/span><\/p>\n<p><span>But Disney\u2019s current trading price suggests Wall Street isn\u2019t buying the spin.<\/span><\/p>\n<p><span>The streaming service\u2019s numbers look particularly bad considering it costs much less than its competitors. Disney+ charges $7.99 a month compared to Netflix\u2019s $13.99 and HBO Max\u2019s $14.99 for a plan with equivalent features. Investors are also likely factoring that this period saw the launch of the first two series in Disney\u2019s massive Marvel brand \u2014 \u201cWandaVision\u201d and \u201cFalcon and the Winter Soldier\u201d \u2014 and then failed to draw a significant number of new viewers.<\/span><\/p>\n<p><span>Financial news outlets like<\/span> <a href=\"https:\/\/www.marketwatch.com\/story\/disney-earnings-blow-away-estimates-as-theme-parks-return-but-streaming-slowdown-sends-stock-lower-11620937341\"><span>Market Watch<\/span><\/a><span> and<\/span> <a href=\"https:\/\/www.investors.com\/news\/disney-stock-disney-earnings-q2-2021\/\"><span>Investor\u2019s Business Daily<\/span><\/a><span> aren\u2019t tying the lower-than-expected subscription rate to the company\u2019s<\/span> <a href=\"https:\/\/www.dailywire.com\/news\/disney-fires-actress-gina-carano-after-post-comparing-hating-someone-over-politics-to-nazi-germany\"><span>decision<\/span><\/a><span> to fire popular \u201cMandalorian\u201d actress Gina Carano in February for her conservative views. But they offer little explanation for why the service underperformed forecasts so significantly for the last quarter.<\/span><\/p>\n<p><span>Back in January, Disney+ looked set to become a subscription juggernaut, with \u201cThe Mandalorian\u201d <\/span><a href=\"https:\/\/www.businessinsider.in\/entertainment\/news\/the-mandalorian-finally-beat-the-office-as-the-most-watched-streaming-series-in-the-us-according-to-nielsen\/articleshow\/80273484.cms\"><span>handing<\/span><\/a><span> the platform its first major win over giant Netflix when it overtook \u201cThe Office\u201d as streaming\u2019s top-viewed series. But that was before Carano\u2019s ouster sent #CancelDisneyPlus trending on Twitter and other social media platforms.<\/span><\/p>\n<p><span>The strong fan reaction reportedly took Chapek by surprise \u2014 so much so, he<\/span> <a href=\"https:\/\/www.dailywire.com\/news\/disney-ceo-asked-about-gina-carano-firing-says-company-isnt-left-leaning-or-right-leaning\"><span>addressed<\/span><\/a><span> the matter during a shareholder\u2019s meeting in early March. Asked if Disney plans to employ a \u201cblack list\u201d to punish conservative performers, the CEO insisted the company isn\u2019t Right-leaning or Left-leaning, but stands for the \u201cuniversal values of respect, values of decency, values of integrity, and values of inclusion.\u201d<\/span><\/p>\n<p><span>It also probably didn\u2019t help matters that Disney was hit with another political scandal just before the second quarter earnings call when insiders<\/span> <a href=\"https:\/\/www.dailywire.com\/news\/disney-quietly-removes-anti-racism-training-from-website-after-insider-leaks-documents-to-reporter\"><span>leaked<\/span><\/a><span> the company\u2019s antiracism training program to journalist Christopher Rufo.<\/span><\/p>\n<p><span>It would be hard to overestimate just how crucial a role the Walt Disney Co. expects Disney+ to play in its future profitability, but a research note analysts MoffettNathanson sent to<\/span> <a href=\"https:\/\/www.fastcompany.com\/90636892\/disney-stock-price-takes-a-hit-after-disney-plus-subscribers-grow-slower-than-expected\"><span>Fast Company<\/span><\/a><span> on Friday summarizes the situation well: \u201cPrevious [key performance indicators] that would swing the stock in years past like ESPN-affiliate fees, domestic-park profitability or global box office are accidental details in a market that is laser focused on Disney\u2019s direct-to-consumer pivot,\u201d the financial firm stated.<\/span><\/p>\n<p><span>The future of Disney\u2019s success depends on Disney+\u2019s success. So they might want to give the next conservative actress a break.<\/span><\/p>\n<p><i>The views expressed in this piece are the author\u2019s own and do not necessarily represent those of The Daily Wire.<\/i><\/p>\n<p><i>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a<\/i>\u00a0<a href=\"https:\/\/www.dailywire.com\/subscribe\"><i>member<\/i><\/a><i>.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Could it be the Gina Carano effect?In a second quarter earnings call, Disney CEO Bob Chapek revealed that earnings came in stronger than anticipated for the fiscal period that ended &#8230;<\/p>\n","protected":false},"author":1,"featured_media":2278179,"comment_status":"close","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/05\/GettyImages-1187547992-1200x800-1.jpg","fifu_image_alt":"Disney Stock Tanks As Subscription Numbers Plummet In Second Quarter","footnotes":""},"categories":[],"tags":[],"class_list":["post-508376","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/05\/GettyImages-1187547992-1200x800-1.jpg","fifu_image_alt":"Disney Stock Tanks As Subscription Numbers Plummet In Second Quarter","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/508376","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=508376"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/508376\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2278179"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=508376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=508376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=508376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}