Disney wants you to focus on revenue and profit instead of streaming subscribers — just not this quarter

The biggest companies successful media and amusement are telling investors to absorption connected gross and nett alternatively of streaming subscriber maturation — that connection backfired connected Disney Tuesday.

Disney added 12.1 cardinal Disney+ subscribers and 14.6 cardinal full direct-to-consumer customers successful its fiscal 4th quarter. Both numbers surpassed astir expert estimates and blew distant quarterly additions from Netflix, which gained conscionable 2.4 cardinal caller subscribers successful the quarter.

A twelvemonth ago, the robust streaming maturation numbers whitethorn person pushed Disney shares higher. But media and amusement executives are pushing investors to worth their companies connected nett and gross alternatively of purely subscriber growth. And those numbers weren't benignant to Disney this quarter.

Disney shares fell 6% aft hours.

Total quarterly Disney gross of $20.1 cardinal missed the mean expert estimation by astir $1 billion, based connected Refinitv statement estimates. Net operating losses successful Disney's streaming division, which includes Disney+, Hulu and ESPN+, ballooned to $1.47 cardinal successful the quarter. That's much than treble the nonaccomplishment from a twelvemonth ago, which Disney partially blamed connected the deficiency of "premier access" content, oregon theatrically released films for which Disney charged an other $30 to stream, specified arsenic "Black Widow" and "Jungle Cruise."

Disney said it expects this 4th to beryllium the nadir for streaming losses, and it reaffirmed profitability is coming.

"We expect our DTC operating losses to constrictive going guardant and that Disney+ volition inactive execute profitability successful fiscal 2024, assuming we bash not spot a meaningful displacement successful the economical climate," Disney Chief Executive Officer Bob Chapek said successful a statement.

Disney is launching its advertising-supported tier for $7.99 per period connected Dec. 8. The institution announced significant terms increases that volition besides footwear successful adjacent month. Both measures are being enactment successful spot to jumpstart gross and nett alternatively than subscriber growth.

But this quarter, Disney recovered itself caught successful betwixt a anterior communicative of subscriber maturation and a contiguous and aboriginal communicative astir concern fundamentals. And investors weren't forgiving.

WATCH: Disney net reaction