The stock dipped by nearly 9 percent yesterday (May 11) after the entertainment company said they lost four million subscribers, partly due to losing the right to stream the cricket games of Indian Premier League on its Star India television network. The 8.7 percent drop in the stock price was the largest one since the stock declined by 13 percent on Nov. 9.
The decline on Friday was smaller and the stock fell by only 0.68 percent at 1:49 p.m. ET. But shares of Disney have fallen by 12.2 percent during the past year as competition heats up among streaming companies who are all vying for the same customers while income from its traditional segment has slumped.
The decline in subscribers marks the second consecutive quarter, but the company was able to limit its losses in the streaming division by $400 million, which is a decline of 26 percent year over year.
Disney will pay $3 billion to broadcast the cricket games, but lost out on the rights to stream the games to a competitor, Viacom18, which is a joint venture between Paramount Global (PARA) and Reliance Industries, owned by Mukesh Ambani, an Indian billionaire. Disney offers the games through its Disney+ Hotstar division, which is provided to customers in India and parts of Southeast Asia.
Disney also lost subscribers living in the U.S. and Canada—300,000 viewers canceled their subscriptions—but it did gain almost 1 million in international markets excluding Disney+ Hotstar.
The company also owns the streaming service Hulu, which attracted 200,000 subscribers and ESPN+ saw a gain of 400,000.