Disney’s stock price plummeted this week and suffered its worst drop in 21 years.
The company has been suffering losses with its streaming service, but assures investors that a price hike and an ad-tier will soon be implemented that they feel will stem the loss, according to Axios.
Still, Disney fell an additional 13 percent in trading on Wednesday, which only adds to the woe of a 44 percent loss so far this year.
“There is an increasing desire by our investor base to make sure there is something there, there, to get something out of it. Our investors expect us to have a return on that investment,” Disney chief Bob Chapek said during an event in New York.
— Sara Fischer (@sarafischer) November 10, 2022
It was reported that Disney has lost $1.5 billion on its streaming services Disney+ and Hulu.
The losses come even as Disney announced an uptick in subscribers for both Hulu and Disney+.
The company’s streaming services have increased to more than 235 million as of October 1 — exceeding Netflix’s 223 million subscribers. Both Disney+ and Netflix are in the midst of rolling out ad-supported options for consumers in the hopes that commercials will not only provide another source of revenue but also bring customers looking to cut costs.
Regardless, Disney shares have continued falling this year, alarming longtime investors who once regarded Disney as a top investment. As Breitbart News reported in June, the stock closed below $100, marking the first time that had happened in more than two years. It is now a tick below $95 as of Nov. 11.