Investors eye fairy tale results from Disney streaming service

Investors will this week zoom in on results from Disney’s streaming service when the US entertainment conglomerate reports results.

Analysts say earnings in the sector have been far from a fairy tale with both Netflix and Amazon disappointing investors. That has been caused in part by cash-strapped consumers cutting back on subscription packages.

Laura Hoy, equity analyst at investment platform Hargreaves Lansdown, said: “While the bulk of Disney’s profits come from its massive parks and experiences division, all eyes will be on streaming when the group reports first-quarter results.

“So far, Disney’s streaming service has been growing at pace with subscribers to its namesake service up 37 per cent in the last quarter. The big question is whether that growth continued in the second quarter.

“Rival Netflix has seen subscriber growth start to dwindle in a post-pandemic lull. Costs are another factor to consider - that segment was in the red at last check as the group spent heavily to build out its streaming plays.”