By Lisa Richwine

LOS ANGELES (Reuters) – Walt Disney Investors will be scrutinizing Co’s streaming TV company on Wednesday, as they reevaluate the industry’s rapid shift to online subscriptions from cable television.

Wall Street shaken by Netflix Inc (NASDAQ 🙂 last month after the streaming video giant revealed it had lost subscribers for the first three months and predicted more cancellations in June.

Netflix shares have dropped 71% and Disney shares 31% since last year. After markets close Wednesday, the Mouse House will release its quarterly earnings reports.

“We’ve reached a point of streaming saturation,” Forrester analyst Mike Proulx said. Consumers have limited time and resources to access the increasing stream options.

It is growing rapidly. According to FactSet estimates, it is expected that the streaming service will attract 5.3 million subscribers by March. This would bring its total number of subscribers up to 135.1 million.

Analysts estimate that new sign-ups will increase to almost 10.8 millions between April and June.

Disney reiterated its February statement that it expected to reach between 230m and 260m Disney+ subscribers by September 2024.

To reach the lowest end, the company must average 9.1 million customers each quarter. 11.8 million is needed to reach that high level. Bob Chapek, Chief Executive Officer of the company has stated that there may be fluctuations in growth from quarter to quarter.

Proulx reported that Disney’s original programs from its stable of entertainment brands were popular with viewers in Forrester surveys, although some people felt the programming was outdated.

This has been addressed by Disney, who added ABC programming to Disney+. He also said Disney will launch the highly anticipated “ObiWan Kenobi” series on May 27. Chapek stated that Disney would accelerate the release of new programming this year, despite facing COVID production challenges.

Michael Nathanson, MoffettNathanson’s analyst for Disney, maintained his neutral rating of Disney on May 2, but lowered his price target to $130 by $20.

He stated that “judging by Netflix’s recent difficulties, it isn’t as appealing as one thought.”

According to Refintiv data, Disney’s March quarter earnings per share are projected to be $1.19. This is due to strong park results, as more pandemic-weary guests crowded Disney World.

Philip Cusick from JP Morgan stated that the park unit had “bounced back in front of expectations” and that the sector will emerge from COVID-19 having more upside long-term.

Following opposition from Chapek to legislation restricting discussion on sexual orientation in schools and colleges, Walt Disney World officials passed a law in Florida that would have revoked Walt Disney World’s self-governing status in June 2023.

A few critics threaten to cancel Disney+ vacations or Disney theme parks in protest.

Proulx from Forrester stated that the majority of consumers don’t respond to threats about boycotting and it is very rare for businesses involved in “cancel-culture” to have a material impact on their financial situation.