Disney+ added just 2 million subscribers last quarter. Here’s why

Recently, though, executives have warned investors not to expect rapid growth quarter after quarter.

A significant portion of Disney+ users are in India, where the service is offered at low cost in combination with the local streaming brand Hotstar, for which sports are a significant driver of viewership.

Disney is looking to better compete with Netflix, which got a massive head start in the streaming space and now has about 214 million paying members.

The Burbank-based company’s streaming business was a bright spot as the rest of the firm suffered from COVID-19-driven shutdowns at parks and a slow recovery for movies at the box office.

In fiscal 2020, Disney posted a rare full-year loss as its traditional businesses — including movies and theme parks — were hammered by COVID-19 restrictions from the government and consumer fears of the spreading virus.

Profits in the fourth quarter totaled $290 million, or 37 cents a share, up from a 20-cent per-share loss from a year earlier.

Hulu clocked in at 43.8 million subscribers in the most recent quarter, up 20% from last year.

After being closed for much of the pandemic, attendance has improved with better vaccination rates and increased comfort among consumers.

The release of movies including the Ryan Reynolds comedy “Free Guy” and the Marvel Studios film “Shang-Chi and the Legend of the Ten Rings” sent revenue up 9% to $2.05 billion in the quarter.

Both movies were exclusively released in theaters, unlike films like “Black Widow,” which was made available for $30 on Disney+ at the same time as its debut in cinemas.

Ryan Faughnder is a film business reporter for the Los Angeles Times’ Company Town and the host of the entertainment business newsletter The Wide Shot.

…Read the full story