Disney earnings miss forecasts as costs rise for its streaming future

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Walt Disney Co on Tuesday missed Wall Street estimates for quarterly profit as heavy investments in its digital portfolio outweighed gains from ...

REUTERS: Walt Disney Co reported a steeper earnings decline than Wall Street expected on Tuesday as the company poured money into its ambitious plunge into streaming media and began folding in assets purchased from Twenty-First Century Fox.

Its biggest digital bet, a family-friendly subscription service called Disney+, is scheduled to debut in November. Shows aimed at adults will be concentrated on Hulu, which Disney now controls. "Some of the other misses seem to be related to the integration of Fox," said analyst Jim Nail at Forrester."I would speculate that they have decided to take all their lumps this quarter and put all this 'bad' news together, clearing the board for better results next quarter."

 

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