MoffettNathanson analyst Michael Nathanson has cut the global subscriber target for Walt Disney’s Disney+ streamer to the company’s 2024 target following the recent loss of Indian Premier League Cricket (IPL) broadcast rights at the hands of Viacom18.
“Now we expect the company to drop from 230 to 260 million with 213 million as Disney+ Hotstar (in India) dwindles to approximately one third of its subscribers (from a previous estimate of 43 per cent)”, wrote in a report Friday. .
Despite the lower Disney+ subscriber forecast, the Wall Street analyst said his financial estimates for Disney’s direct-to-consumer (DTC) unit earnings before interest and taxes (EBIT) actually improved, moving to a profit forecast of $300 million for fiscal year 2024. Loss is $310 million. Driver: “Our estimated increase in IPL costs is necessary to secure entitlements.”
In light of India’s cricket rights auction and recent Netflix subscriber losses, Wall Street watchers are wondering whether Disney, led by CEO Bob Chapek, can reduce its streaming user guide from 230 million to 260 million. million subscribers by 2024. In May, Disney announced that it had added In the last quarter, the 7.9 million subscribers reach 137.7 million.
“We have decided not to renew the digital rights due to the price required to secure this package,” Rebecca Campbell, Disney’s president of international content and operations, said in a statement following the cricket auction, in which the conglomerate’s Star India service secured exclusive broadcast. . A rights package for the 2023-2027 Indian Premier League cricket seasons for $3 billion. “We made disciplined offers with a focus on long-term value.” Like its rival media giants, the world is experiencing a sharp rise in streaming content rights.
Nathanson maintains a “market performance” rating on Disney stock but lowered his price target by $5 to $120 on Friday. Disney will release its fiscal third-quarter earnings on August 10.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
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