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Agencies 4 Growth Festival Logo

Disney prioritises streaming service as profits fall short

Disney prioritises streaming service as profits fall short

Walt Disney has failed to hit its own profit targets despite enjoying a successful summer box office as the media titan repositions itself to compete in the streaming era.

Disney posted net income of $2.9bn or $1.87 per share, equivalent to a 23% rise in profits year-on-year but below Wall Street estimates of $1.95 per share. These numbers were driven by both higher costs and declining income at its television networks which fell 1% to $1.8bn.

Despite the disappointment, unruffled chief executive Bob Iger expressed optimism for the future in conversation with analysts, pointing to the looming launch of an in-house Netflix rival late next year following its agreement to cannibalise large parts of 21st Century Fox.

Addressing the threat posed by streaming providers head-on, Iger shared his belief that Disney can "thrive alongside Netflix, Amazon and anyone else in the market" but conceded that a "lower volume of product" would be reflected in a keener pricing plan than its established rivals.

With Fox under its wing Disney will command a swathe of cable channels such as National Geographic with which to add to its existing assets such as Marvel and Pixar.

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