Walt Disney Co. is expected to report its first-quarter earnings after the market close Tuesday as the entertainment giant expands its direct-to-consumer offerings amid growing competition from Netflix and other streaming services.
Here's what analysts are expecting:
—Earnings: $1.55 per share, according to Refinitiv
—Revenue: $15.14 billion, according to Refinitiv
Disney, whose assets include cable networks such as ESPN and film studios like Marvel, is making a push into streaming services as more consumers drop their pay-TV package in favor of cheaper options that can be watched through an internet connection. The company launched the sports streaming service ESPN+ last year and plans to launch Disney+, a streaming service of its movies and original programming, later this year.
The company expects its pending $71.3 billion acquisition of a majority of assets from Twenty-First Century Fox to aid that strategy. The deal is expected to provide Disney with additional media assets for its new streaming service and would also give Disney a larger stake in the streaming service Hulu.
But Disney's direct-to-consumer push comes with risks: It's hard to turn a profit on streaming services, which usually entail high content and technology costs but offer lower prices than traditional cable to attract consumers. Disney said in a filing in January that its stake in Hulu and its ownership of BAMtech, the streaming technology that powers ESPN+, led to a loss of more than $1 billion in the 2018 fiscal year.
This story is developing. Please check back for updates.
Disclosure: Comcast, which owns CNBC parent NBCUniversal, is a co-owner of Hulu.
from Top News & Analysis https://cnb.cx/2UKKMzQvia IFTTT
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