Disney's direct-to-consumer business is growing, but so are its operating losses

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Those losses are compounded by the fact that Disney is sacrificing hundreds of millions of dollars in the short term that would have come from licensing its content to rival platforms like Netflix as it retains content rights for its own service. Franchise films will land on Disney+ — but not until after they run in theaters. Iger said that the company will distribute Marvel films on Disney+, including box-office behemoth"Avengers: Endgame" on December 11 — about one month after the service launches. As a result, those films are unlikely to spur adoption of Disney+; for example, a new film appearing on the service at the same time as it appears in theaters could trigger a spike in SVOD sign-ups in response.

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