Lisa Richwine and Nivedita Balu

(Reuters] Walt Disney Co. on Wednesday reported that it missed Wall Street’s earnings projections. It posted the smallest quarterly growth in Disney+ subscriptions since two years ago, when the company began to enter the streaming video marketplace (NASDAQ)

From July through October 2, Disney’s operating income was $640 million. This is the first quarter since COVID-19, when the parks closed. According to IBES data available from Refinitiv, the parks’ profits were below Wall Street estimates of $942 millions.

In the third quarter, Disney+ attracted 2.1 million new customers. Factset estimates show that analysts had predicted 10.2 millions, despite Chief Executive Bob Chapek warning in September about COVID-related delays and other issues that would reduce new signups to “low single digit million.”

After-hours trading saw Disney stock shares fall 4.3% on Wednesday

Media company earned diluted earnings per share of 37cs. This is below analysts’ projections of 51c.

Disney has placed its hopes on creating streaming services in order to be competitive in the crowded online video space dominated by Netflix.

By October 1, Disney+’s paying subscribers had reached 118.1 millions. Hulu, ESPN+ and other streaming services were added to bring the total number of customers to 179 millions.

The streaming media unit of Disney, also known as direct-to-consumer, continues to lose money, as it pays for programming new and other expenses. This unit posted an operating loss totaling $630 million for the quarter.

Chapek previously stated that streaming growth would fluctuate quarter-to-quarter and has maintained the company’s projected projection of between 230 million and 260 million Disney+ subscribers at the end of fiscal 2024.

Disney has a special offer this week: Disney+’s first month is $2 instead of the $8 usual.

Disney’s “Jungle Cruise” adventure film, Marvel movie “Shang-Chi and the Legend of the Ten Rings”, a new movie called “Home Alone” and other streaming programming will be available on Friday.

Disney’s quarterly revenue estimates were also lower than the analysts expected.

From $14.71 trillion a year ago, revenue rose to $18.53billion in the fourth quarter. According to IBES data, Refinitiv.com, analysts had predicted $18.79 trillion.

The net income from the company was $159million, which is 9 cents per sy, as compared to a loss in 2007 of $710 million or 39 cents per sy.