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Disney’s Chapek says program production delayed as Delta variant spreads By Reuters

by Mike Robinson

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© Reuters. FILEPHOTO: Chairman of Walt Disney Parks and Resorts Bob Chapek addresses the crowd at the Hong Kong Disneyland’s 10th anniversary celebration on September 11, 2015. REUTERS/Tyrone Siu/File Photo

(Reuters) – Walt Disney (NYSE:) Co Chief Executive Officer Bob Chapek said on Tuesday the resurgence of the Delta variant of the coronavirus was delaying production of some of its titles.

The company’s shares fell by 3% following Chapek’s announcement. This is after the company was hard hit by the coronavirus epidemic, when many of its movie theatres and theme parks were closed.

Chapek spoke out at the Goldman Sachs Communacopia Conference. “Our TV group is producing hundreds of programs… however, the resurgence COVID and Delta had an impact on some of our productions so we have a lighter product quarter for Q4 than we would have expected,” he said.

Global production delays caused by COVID were evident, although the problems were temporary, he said.

Disney+ streaming service, launched November 2019 has had more people tuning in. However, the market is heating up due to new entrants as well as investments by companies such Apple (NASDAQ:), and Netflix (NASDAQ.:).

Chapek stated that the company is still confident and bullish about long-term subscription growth but could see “a bit more noise” than expected.

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