Disney's Streaming Service Will Cost 'Substantially' Less than Netflix

New 'Star Wars' Trilogy in Works With Rian Johnson, TV Series Also Coming to Disney Streaming Service

Disney CEO and chairman Bob Iger said that a series based on the Pixar-owned Monsters franchise, another based on High School Musical and a Marvel Entertainment-produced shows were also being readied for the platform.

For the quarter ended September 30, Disney reported earnings of $1.07 a share, excluding some items, missing the $1.14 average of analysts' estimates.

Shares of Disney rose more than 2% on Friday, reversing late losses from the night before after the company's management touted its plans for a new streaming service that will undercut rival Netflix on pricing.

Will your Star Wars TV binge save you more money than a Stranger Things marathon? "So it's a collection - it will be a collection of just those brands", he said Thursday on a conference call with investment analysts.

The service will be called ESPN Plus, and live inside a new app that will be launched by the sports broadcasting network in spring 2018 - much earlier than Disney's more general subscription streaming service that will launch in 2019. The Fox deal would've given Disney control of a large portion of Fox's TV shows, which Disney would've then presumably moved over to their upcoming streaming service. The downdraft from bad weather, lower ad sales and a tough year for movies was too powerful even for Disney, which counts on TV, theme parks, consumer products and its famous studio to fuel growth.

Disney is convinced that we're all going to make the migration though - so convinced that they are apparently spending over $300 million a year on this endeavour. The higher results were due to worldwide growth at Disneyland Paris and Shanghai Disney Resort, partially offset by domestic decreases, which were impacted by Hurricane Irma.

Disney's ESPN witnessed higher programming costs, lower advertising revenue were offset by higher affiliate revenue.

"I'm pleased to note that Shanghai Disney Resort generated positive operating income during its first full fiscal year of operations, which comfortably surpassed our expectations of breakeven from its first year", McCarthy said.

Revenue of $12.78 billion was down 3% and missed expectations of $13.3 billion. Iger did not address reports that ESPN was planning layoffs of about 100 employees, as reported by several media outlets - and ESPN spokesperson Mike Soltys declined comment on the report. "It'll have a lot of high-quality content because of the brands and the franchises that will be on it that we've talked about. They're always opportunities to improve".

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