Published: Fri, August 10, 2018
Culture | By Antonia Gonzales

Disney quarterly profit falls short as streaming costs rise

Disney quarterly profit falls short as streaming costs rise

Actor and director Jon Favreau (Iron Man, The Jungle Book) is now hard at work executive producing and writing a live-action Star Wars TV series for Lucasfilm and Disney's new direct-to-consumer streaming service. There's no word on a timeline beyond initial rollout, but come 2019, this definitely seems like one streaming service you might not be able to live without. Also, tv show spinoffs for Lady and The Tramp, Monsters Inc.

The cost to build streaming services contributed to a profit decline at Disney's media networks, the company's largest unit, in the quarter.

Due to syndication deals which are already in place, there will be some properties which won't be available at the launch of the streaming service.

In response to a question about whether the new streaming service will feature some of the older "Star Wars" titles that Disney had sold TV rights to, Iger largely deflected and noted that going forward, new studio releases will not be encumbered by licensing agreements.

Iger said that Disney was "obviously very excited" about bringing 21 Century Fox content to the new service once the acquisition of Fox's entertainment assets closes, but added that the company remained "incredibly supportive and enthusiastic" about theatrical distribution of movies. The lower price point reflects Disney's strategic decision to offer less overall content than its red-lettered competitor, although, unlike Netflix, all the content appearing on the new service will carry Disney's in-house development DNA. And when it comes to future films, like Avengers 4, they will end up on Disney's service.

Disney CEO Bob Iger recently released details of what can be expected in this new service, as well as the projected launch date. People around Hollywood are calling it DisneyFlix, but that's not official. I've heard a few other names as well. The confirmation comes after it was revealed that Disney was in talks with Turner Broadcasting to get the rights back in order to have them for their streaming service, which is supposed to debut next year.

Disney is "on track" to launch its Disney-branded streaming service late next year, with "numerous original projects now in various stages of development and production", according to CEO Bog Iger. Can they make it work?

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