Disney earnings miss forecasts as cost of building streaming video rise

REUTERS: Walt Disney Co reported a steeper earnings decline than Wall Street expected on Tuesday as the company poured money into the streaming media business it is building to challenge Netflix.

Disney's 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 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."Netflix's shares slipped in April when Disney priced Disney+, at US$6.99 per month, below the video streaming pioneer's basic plan of US$8.99.

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