Disney missed Wall Street forecasts on streaming losses

Walt Disney Co failed to meet Wall Street's earnings forecast on Tuesday. The entertainment giant has suffered financial losses due to its advancement into streaming video.

The company received more new customers from July to September than analysts expected. However, media investors are more focused on the company's losses rather than the number of streaming subscriptions.

Disney has spent billions of dollars to build their streaming services. That is why the company stood on a par with Netflix Inc and other companies and was also able to compete with such companies. Disney+'s main service reported 164.2 million subscribers in the fiscal fourth quarter surpassing Factset's estimate of 161 million. However, despite acquiring more subscribers than expected, the streaming unit lost $1.5 billion during the fourth fiscal quarter, Reuters reported.

According to PP Foresight analyst Paolo Pescatore, Disney's path is somewhat similar to that of Netflix. Pescatore warns of further losses in the streaming business as increasing the company's profitability is a hard task.

Disney's quarterly net income rose 1% to $162 million. The company earned 30 cents per share. However, Disney did not meet Wall Street's goal of 55 cents per share.