The Latest: Disney says streaming service not Netflix rival
NEW YORK (AP) — The Latest on Disney’s financial results (all times local):
Disney says its upcoming streaming service won’t try to compete directly with Netflix and Amazon, but will focus instead on quality — namely original programs from Disney’s “Star Wars,” Pixar and Marvel brands.
The details from Disney CEO Bob Iger come as Disney reported a growth in earnings for the latest quarter, though results missed expectations.
With Comcast out of the bidding war, Disney is planning to move forward with its $71.3 billion purchase of Fox’s entertainment assets, in part to boost a Disney-branded streaming service set to launch in late 2019. Disney’s shareholders and U.S. regulators have approved the Fox bid. Disney is awaiting regulatory approval overseas.
Though a price for the upcoming entertainment service hasn’t been set, Iger told analysts during a conference call that the price will reflect a lower volume of shows and movies. Netflix plans range from $8 to $14 a month.
In the works for the Disney streaming service are a live-action “Star Wars” series, new episodes of the animated “Star Wars” series “Clone Wars,” a live-action version of “Lady and the Tramp” and new series related to the “High School Musical” and “Monsters Inc.” movies.
The Walt Disney Co. (DIS) on Tuesday reported fiscal third-quarter profit of $2.92 billion.
On a per-share basis, the Burbank, California-based company said it had profit of $1.95. Earnings, adjusted for pretax gains, came to $1.87 per share.
The results missed Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $1.97 per share.
The entertainment company posted revenue of $15.23 billion in the period, which also did not meet Street forecasts. Four analysts surveyed by Zacks expected $15.49 billion.
Disney shares have risen slightly more than 8 percent since the beginning of the year, while the Standard & Poor’s 500 index has risen almost 7 percent. In the final minutes of trading on Tuesday, shares hit $116.56, an increase of almost 10 percent in the last 12 months.
This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on DIS at https://www.zacks.com/ap/DIS