Disney+ Q2 subscriber additions slow, outlook still bright – J.P.Morgan

J.P.Morgan expressed confidence that Walt Disney Co’s popular streaming service will grow at a robust pace despite a sluggish showing in the second quarter, and said its legacy businesses will also improve as economies reopen.

Disney+, the streaming service the company launched in November 2019, failed to reach as many subscribers by early April as Wall Street had estimated, in part because the hugely popular cricket tournament Indian Premier League was cancelled due to a surge in coronavirus cases in India.

Disney shares fell 3.7% in aftermarket trading on Thursday after reporting results.

The company focused on the streaming service during the pandemic, quickly adding subscribers as people stuck at home due to travel curbs looked for more content than what market-leader Netflix Inc could offer.