What Happened
Venkateshwar said this downgrade was justified based on a perceived slowing of the subscription level of the Disney+ streaming service, claiming the company has fallen behind its goal of reaching 150 million Disney+ subscribers by 2024. Disney CEO Bob Chapek stated last month the fourth-quarter global paid subscribers for Disney+ is forecast to by “low single digit” millions, down from a 58.5 million increase in the previous quarter.What Happened Next
However, one prominent media expert is questioning whether the Barclays analyst is on target.In an interview with Benzinga, Ian Greenblatt, managing director for technology, media, and telecommunications intelligence at J.D. Power, observed that tracking the streaming sector requires different considerations when compared to other media markets.
“Streaming isn’t necessarily a zero sum game, where other aspects of telecom are zero sum,” Greenblatt said, noting the traditional media industry strategies of growing by attracting customers from competitors doesn’t fit into the streaming environment.
What Didn’t Happen
Greenblatt contradicted Venkateshwar in observing that Disney+ “is in a nice position to continue to grow,” adding that the streaming sector has yet to plateau, noting there are still a considerable number of consumers who have yet to jettison cable services in favor of streaming.“The market has to taper off or mature somewhat at a certain point, but have we reached that point yet?” he asked. “I don’t know, but it still feels like there’s a lot yet to happen.”
Greenblatt also pointed out that Venkateshwar’s analysis focused solely on Disney+ while ignoring the company’s other streaming activities, including ESPN+ and Hulu.
