Disney’s CEO Bob Chapek on Tuesday stated that his company’s streaming service growth has “hit some headwinds” related to COVID-19, according to a report by CNBC on Tuesday.

  • Disney expects to add “low single-digit millions” of streaming subscribers in the fourth quarter. Disney shares ended the session down 4.1%.
  • Chapek stated that “mobilizing partners” in Latin America to push Disney’s new Star+ streaming service, Covid-19 related suspension of the India Premier League, and production delays from the delta variant have hampered subscriber numbers in the fourth quarter.
  • The CEO further stated that they are going to see more noise than maybe the Street projects quarter to quarter. The resurgence of Covid-19 and delta impacted productions.
  • Chapek’s forecasts are significantly lower than some analyst’s expectations. Deutsche Bank analyst Bryan Kraft expected Disney+ net to add nearly 13 million in the quarter.

Global production delays will be “very short-term.” However, there won’t be as much new programming in the fourth quarter “that we might have expected,” which will affect subscriber growth.

DIS up +0.89%.