Shares of The Walt Disney Company fell over 9 percent on Tuesday after CEO Bob Iger indicated that Disney is still facing challenges as it tries to recover from recent financial setbacks. The company warned that the upcoming quarter might be weaker than expected, especially in terms of streaming, with Disney+ subscriptions projected to remain flat in the near future.
Despite the rocky road ahead, Iger reaffirmed the importance of streaming entertainment for Disney’s future growth. He acknowledged that the path to profitability may not be straightforward but emphasized that streaming will be a key driver for the company going forward.
In response to Disney’s struggles at the box office, Iger announced plans to reduce the number of Marvel superhero releases to a maximum of three films per year, along with two series. The disappointing performance of “The Marvels” highlighted the challenges facing the Marvel brand.
Additionally, a recent poll showed that only 46 percent of adults have a favorable view of the Disney brand, with 71 percent urging the company to end its LGBTQ agenda. Disney’s streaming business reported a loss of $18 million in the second quarter of 2024, an improvement from previous years.
Disney has been criticized for promoting LGBTQ messaging in its content aimed at children, leading to backlash from some audiences. The company has faced controversy over its advocacy on LGBTQ issues, sparking debates about its impact on audiences.
