Disney shares (DIS) continued to make gains on Friday after the company reported better than expected earnings for the fourth quarter, and CEO Bob Iger announced the launch of a new streaming service called Disney+.
On Thursday, US media giant Disney (DIS) reported a revenue of 14.3 billion USD for the fourth quarter ending in September, whereas analysts had predicted only 13.7 billion.
Revenue from both media networks and parks and resorts rose roughly 9 % from one year to the next. Disney delivered a surprise regarding its bottom line as well when it reported adjusted earnings of 1.48 USD per share, whereas analysts had expected only 1.34 USD.
During the earnings call CEO Bob Igers announced the launch of a new challenger to the streaming service, Netflix. The upcoming Disney+ will be operated by Disney’s subsidiary Direct-to-Consumer and International, and should begin streaming in late 2019. The original Star Wars and Marvel series, as well as Pixar, should prove to be the main aces up Disney+’s sleeve.
The launch of its own streaming service was an eagerly awaited step after the company announced last year that it would end its streaming deal with Netflix. It is a major blow for
Netflix, which will lose access to studio’s 2019 movies, including the final installment of the Star Wars saga.
After spending heavily in the direct-to consumer field over the past few years, Disney is apparently prepared to challenge Netflix’s heretofore dominant position in the streaming market, at least in US where the Disney+ plans to make its initial launch.
Photo source: pixabay.com
