Walt Disney Co. reported a smaller-than-expected increase in subscribers to its namesake streaming service, a sign that Disney+ is struggling to broaden its appeal after an explosive start.
The video service gained 2.1 million customers in the fiscal fourth quarter, Burbank, California-based Disney said Wednesday, bringing the total to 118.1 million globally. Analysts were forecasting 119.6 million, the average of estimates compiled by Bloomberg.
The miss was part of a broadly disappointing quarter for the entertainment giant, which also saw profit decline at its film and TV businesses.
Disney has made the family streaming service its major focus for growth in the coming years, and looks to reach as many as 260 million customers by 2024. The company is celebrating the second anniversary of the $8-a-month Disney+ on Nov. 12 by offering new movies and promotions across the Disney empire.