"We're obviously very excited to leverage the Fox assets to enhance and accelerate our DTC [direct to consumer] strategy". Disney parks and resorts reported yet another strong quarter, with revenue increasing 6% to $5.2 billion. With the Disney-branded entertainment service, Disney will have more control over its movies and TV shows from creation to distribution.
But Iger said that movies Disney plans to release in 2019, including "Captain Marvel", "Dumbo", "Toy Story 4" and "Frozen 2", won't be encumbered by licensing deals and can go straight to the service soon after their theatrical releases.
A lot of details were revealed, though, and here is what we now know about Disney's new streaming service.
This confirms what has been suspected all along, that the streaming rights would kick over for all of Disney's movies starting in 2019 and beyond.
Iger also touched upon competing with Netflix, but said they won't compete with Netflix in terms of volume, but will focus on quality with films and shows from Marvel, Star Wars, Pixar and more. In the piece we get some insight into what Strauss has planned for the service when it launches next year, including one of its most valued properties, Star Wars.
However, a recent New York Times report says Disney has been working on a live-action Star Wars show, which will be exclusive to its streaming service. But when Disney announced the launch of its own streaming service, it effectively severed ties with Netflix. Excluding one-time items like a benefit from lower federal tax rates, income was $1.87 (roughly Rs. 128) per share. Adjusted earnings per share totaled $1.87, less than the Street's expectation of $1.95.
Elsewhere, Disney's studio and entertainment division saw a 20 percent boost in sales, to $2.88 billion, due mainly to the success of "Avengers: Infinity War" and "Black Panther".
Disney's consumer products and interactive media division saw revenue dip 8% to $1 billion.
Disney, which has been pushing up prices at its theme parks in recent years, saw the latest price hike lead to a slim 1 percent gain in United States theme park attendance in the period - down from an 8 percent increase last year - while hotel occupancy rates dropped to 86 percent from 88 percent.
Disney stock dipped 2% in after-hour trading, falling to $114.31.