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Bob Iger, chairman and chief executive officer of The Walt Disney Co.
Walt Disney Co. shares rose 2 percent in extended trading Tuesday after the company reported earnings per share and revenue that topped analyst estimates, helped by sales increases in its media networks and theme parks businesses.
Netflix and other streaming services.
Here’s what analysts are expecting:
—Earnings: $1.84 per share, vs $1.55 per share expected, according to Refinitiv
—Revenue: $15.30 billion, versus $15.14 billion expected, according to Refinitiv
Disney, whose assets include cable networks such as ESPN and film studios like Marvel, is making a push into streaming services as more consumers drop their pay-TV package in favor of cheaper options that can be watched through an internet connection. The company launched the sports streaming service ESPN+ last year and plans to launch Disney+, a streaming service of its movies and original programming, later this year.
The company expects its pending $71.3 billion acquisition of a majority of assets from Twenty-First Century Fox to aid that strategy. The deal is expected to provide Disney with additional media assets for its new streaming service and would also give Disney a larger stake in the streaming service Hulu.
But Disney’s direct-to-consumer push comes with risks: It’s hard to turn a profit on streaming services, which usually entail high content and technology costs but offer lower prices than traditional cable to attract consumers. Disney said in a filing in January that its stake in Hulu and its ownership of BAMtech, the streaming technology that powers ESPN+, led to a loss of more than $1 billion in the 2018 fiscal year.
This story is developing. Please check back for updates.
Disclosure: Comcast, which owns CNBC parent NBCUniversal, is a co-owner of Hulu.
from Viral News Reports http://bit.ly/2UDBTI0
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