Disney (DIS) recently reported its Q2 earnings, which were largely in line with Street forecasts, but revealed a notable drop in revenues from its India streaming subscribers. This suggests that the loss-leading division may continue to face challenges in the coming months.

CFO Christine McCarthy further impacted the stock by stating that the weakness in the streaming division would “linger” into the three months ending in June. Disney’s adjusted diluted earnings for the three months ending in March amounted to 93 cents per share, a 14% decrease from the same period last year. Group revenues, however, rose 7.5% to $21.82 billion, narrowly beating Street forecasts of $21.79 billion.

The number of Disney+ paid subscribers dropped by 4 million to 157.8 million, partly due to the loss of televised cricket rights in India. Revenues per Hotstar+ user also decreased by 20% from the previous quarter to $0.59. In contrast, a better-than-expected figure from each North American user, which increased by 20% to $7.14 due to price increases in the US and Canada, helped the division post a narrower $659 million loss compared to the $1.1 billion loss over the three months ending in December.

Revenues for Parks and Experiences rose 17% from last year to $7.78 billion, partially owing to the reopening of sites in Hong Kong and Shanghai. CEO Bob Iger expressed satisfaction with the improved financial performance of the streaming business, attributing it to strategic changes made throughout the company to realign Disney for sustained growth and success.

Despite these accomplishments, Disney shares fell 4.4% in after-hours trading following the earnings release, indicating a Thursday opening bell price of $96.75 each. Entrepreneurs and investors should keep a close eye on Disney’s streaming performance in the coming months to gauge the company’s ability to adapt to the rapidly changing media landscape.