Disney CEO says EPS to be in line with previous year
- Author: Stacy Houston Sep 08, 2017,
Sep 08, 2017, 0:43
DIS -3.79% intends to offer its Marvel and Star Wars properties through the subscription video service it is planning to launch in 2019, rather than renewing a deal with Netflix Inc., NFLX -0.21% according to Chief Executive Robert Iger.
At the same time that it announced the launch of a proprietary Disney platform last month, Disney said that an ESPN-branded streaming app was also in the works - which Iger confirmed is slated to bow next spring. He did not specify a monthly fee for the service.
Netflix and Disney originally inked the licensing pact for the US pay-TV window in 2012, under which Netflix secured streaming rights to the Mouse House's films starting with 2016 releases. Mr. Iger said that earnings per share would be "roughly in line" with results for 2016, when it had per-share profit of $5.72. In addition to Star Wars and Marvel products, it's good to hear that Disney will also be producing original Disney content for the service as well.
Apple and Google prepare for Augmented Reality clash
ARCore is already seeing support from Unity and Unreal Engine , along with plenty of other developers out there in the world. Now, with Apple's plans to focus on AR with the upcoming iPhone 8 , Google knows these baby steps won't get it anywhere.
Part of the muted reaction from Netflix investors is likely because investors were already bracing for the impact of the Mouse House pulling back Pixar and Disney titles: Netflix's shares dropped 7% the week following Disney's over-the-top announcement last month. It's possible Disney revisits those scripts (they're all written) and reworks, or they may start over from scratch.
The Disney app will not have advertising. There's no word yet on how much it will cost.
Disney handed some bad news to Netflix today. But just because the service isn't launching til 2019 doesn't mean the movies will remain on Netflix until then. However, there was still some hope that Netflix would continue to be the post-theatrical home for Star Wars and Marvel movies.