Netflix Stock Retreats On Disney Competitive Threat

039;Monsters Inc.' and 'High School Musical' series will also debut on the streaming service

Courtesy of Disney

With an ambitious plan to bring loads of new content to the small screen - including a newly announced live-action Star Wars TV series - the Mouse House is pushing hard into the TV streaming space.

"This one app experience will be a one-of-a-kind product, offering sports fans far more than they can get on any other app, website, or channel and immediately propelling ESPN in the new direction", Disney chairman and CEO Bob Iger said Thursday.

The earnings call also coincided with news that The Last Jedi director Rian Johnson is to produce an entirely new Star Wars trilogy, as well as write and direct ots first instalment. While the only other Star Wars TV show, Star Wars Rebels, is ending soon, that's not the case for Marvel, which has several shows airing or in the works on sister and rival networks.

Iger said in the call that Disney's platform would be "substantially cheaper" than Netflix, which now charges $10.99 / £5.99 a month for its basic package.

"As I've said earlier, we're going launch this thing pretty aggressively", he said on the call Thursday.

The catalog will include Disney's Star Wars and Marvel movies, as previously announced, and any new Marvel shows, which won't be produced exclusively for platforms like Netflix unlike Daredevil, Jessica Jones, Luke Cage and The Defenders.

Studio entertainment revenue were down 21% to $1.4 billion. The just-ended fiscal year's movie slate, while strong, didn't quite stack up to the preceding year, in which Disney had mega-hits including "Star Wars: The Force Awakens", "Zootopia" and "Finding Dory".

Fourth-quarter profit at Disney's cable TV unit, the company's single biggest profit contributor, slumped 1.2 per cent to $1.24 billion, hurt by weak advertising sales and higher programming costs for baseball and football at ESPN. It'll have a lot of high quality because of the brands and the franchises that will be on it that we've talked about.

Thanks to the company's talkative CEO, we have a good idea about when it will launch, how much it will cost, and what types of shows and films it might stream.

Operating income for domestic parks, resorts, and Disney Cruise Line was down 6 percent because results were lower at Walt Disney World in Orlando.

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.

Latest News