Disney Says Its New Streaming Service Won't Rival Netflix

Brenda Watkins
August 8, 2018

With the Disney-branded entertainment service, Disney will have more control over its movies and TV shows from creation to distribution.

Iger also touched upon competing with Netflix, but said they won't compete with Netflix in terms of volume, but will focus on quality with films and shows from Marvel, Star Wars, Pixar and more.

The strategy is bound to be short-lived though, with Disney readying the service to challenge Netflix at every turn.

The untitled Star Wars live-action series does not yet have a release date but the Disney direct-to-consumer platform will launch in late 2019.

Iger did not reveal the exact price for the service, but he did say Disney's streaming service will cost "significantly less" than Netflix.

CNET has reached out to Disney to confirm the report's details. Pretty much, Marvel movies hit Netflix eight or nine months after their theatrical debut, and all that really proves is that Captain Marvel would normally likely hit around November or December 2019...which is perhaps a little after we expected their service to hit.

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Overall, Disney posted earnings of $1.87 per share excluding certain items, an increase from a year earlier, but below Wall Street's average forecast of $1.95, according to Thomson Reuters I/B/E/S.

In the Mouse House's media networks division, which includes ESPN and ABC, operations eked out a 3 percent gain in total revenue but higher programming fees, including for the National Basketball Association, resulted in a 6 percent decline in operating profit.

Net income attributable to Disney rose to $2.92 billion, or $1.95 per share, in the quarter, compared with $2.37 billion, or $1.51 per share, a year ago.

Shares of Disney, which have climbed almost 9 percent so far this year, slipped 1.1 percent in after-hours trading on Tuesday to $115.45. The average estimate of four analysts surveyed by Zacks Investment Research was for adjusted earnings of $1.97 (roughly Rs. 133) per share.

Operating profits in its consumer products unit, the smallest division, slipped 10 percent on an 8 percent drop in revenue - due mainly to lower licensing revenue from "Spider-Man" and "Cars".

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