Disney also faces tough competition from streaming services like Netflix with the new ad tiers they offer. And competitors like Warner Bros. Discovery and Paramount are a challenge. The competitive marketplace, along with reductions in ad budgets and economic uncertainty, are posing a challenge to Disney’s long-term streaming strategy.
Disney boss Iger has been overseeing a broad restructuring at the company. And he has been overseeing job cuts of approximately 7,000. Iger has staggered the staffing reductions, which are planned to be completed before the summer.
The company’s efforts to reduce costs and operate more efficiently are essential for the successful transition to streaming.
What the Analysts Say
Analysts at SVB Moffett Nathanson lowered their price target for Disney’s stock by $3 to $127 following the report, but maintained the firm’s outperform rating. They predict aggregate subscriptions will be roughly flat in the fiscal third quarter and rise in the fiscal fourth quarter.
