Disney Earnings: Lackluster Subscriber Growth Remains a Sore Spot Despite Smaller Streaming Losses

Disney posted a solid fiscal third quarter as streaming losses continued to shrink, but Disney+ and Hulu delivered very weak subscriber numbers. Even as the streaming segment remains on course to break even by the end of fiscal 2024, we still believe Disney needs to drive stronger top line growth to replace declining linear networks revenue. While the just-announced price increases are one lever for driving revenue growth, we think subscriber growth will also be required over the medium term. We are maintaining our $145 fair value estimate.