ARTS + ENTERTAINMENT

Disney looks strong ahead of streaming launch

Nov 8, 2019, 5:28 AM

(CNN) — Disney will join the streaming wars from a position of strength. Netflix, beware.

The entertainment giant — buoyed by the release of “The Lion King” and “Toy Story 4,” as well as its theme parks — beat Wall Street’s expectations when it reported earnings after the bell on Thursday. Shares are up 5% in premarket trading.

The company’s profits slumped as it spent big ahead of the launch of its Disney+ streaming service in the United States, Canada and the Netherlands next week. But investors aren’t overly concerned. They’re already looking ahead.

“With the launch of Disney+, we’re making a huge statement about the future of media and entertainment and our continued ability to thrive in this new era,” CEO Bob Iger told analysts.

Disney has built up a massive content library to support its streaming strategy. Marvel, Mickey Mouse, Pixar, Star Wars and 21st Century Fox titles like “The Simpsons” are now all part of the Disney family.

Adding to its muscle: Iger announced Thursday that Disney and Amazon reached a deal to bring Disney+ to Amazon’s Fire TV devices. He said the company also has distribution deals with Apple, Samsung, LG, Google and Microsoft.

The competition is fierce. Apple launched its Apple TV+ service last week. CNN parent AT&T and Comcast will soon follow suit.

Disney is poised to dominate among new entrants. In a recent survey conducted by Bank of America Merrill Lynch, 17% of respondents said they were most likely to subscribe to Disney+ when it went live, a much higher percentage than for Apple TV+ and AT&T’s HBO Max.

Netflix is in a strong position, too. Per Bank of America, Netflix could lose some customers as a result of the Disney launch, but the churn will be modest. Only 5% of US consumer surveyed said they were likely to cancel Netflix to switch to Disney+, and that probably includes some subscribers who were likely to cancel anyway. Disney will need to play the long game.

Investors wait for more details on trade

Markets are coming off euphoria about a “phase one” US-China trade deal on Friday, and the reasons are clear: More details are needed, and nothing is set in stone.

What happened: A spokesman for China’s Ministry of Commerce told reporters Thursday that US and Chinese negotiators have discussed rolling back tariffs, saying the relief could happen even before a deal is signed. That sent US stocks to more record highs.

Since then, comments from the Trump administration have helped bring traders back down to Earth.

“There is no agreement at this time to remove any of the existing tariffs as a condition of the ‘phase one’ deal,” White House trade adviser Peter Navarro said Thursday on FOX Business. “The only person who can make that decision is President Donald J. Trump.”

Iris Pang, China economist at ING, thinks there’s more work to be done. The size of the rollback could be particularly contentious, in her view.

“If it’s too big, China could be more reluctant to return to the negotiating table later on,” she said. “If it’s too small, China may see the move as an insignificant concession that will do little to help its economy.”

Companies run by billionaires are better for investors

Billionaires tend to be good at making money for themselves. Buying into the companies they control could make the rest of us richer, too — at least according to a new report.

Shares in companies controlled by billionaires have significantly outperformed the global market average over the past 15 years, per UBS and PwC.

Researchers analyzed the stock performance of 603 public companies in which billionaires have considerable sway and to which most of their wealth is tied, Hanna Ziady reports for CNN Business. The result? Companies’ annualized gain over the 15-year period was nearly 18%, versus 9% for a broad stock index that tracks shares in 47 countries.

The billionaire-controlled companies were also more profitable. Stock pickers, do with that information what you will.

 

The-CNN-Wire
™ & © 2019 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Arts + Entertainment

ksl movie show review host steve salles next to dune part two poster...

Steve Salles

KSL Movie Show review: ‘Dune: Part Two’ is a masterclass in cinematic world-building

In this KSL Movie Show review, we dive into the larger-than-life world of "Dune: Part Two," which picks up where the first part left off.

8 hours ago

McDonald's new temporary logo is a nod to Japanese graphic novels (manga) as well as anime. (Caitly...

Simone Seikaly

Here’s why the Mcdonald’s logo is upside down on your bag of fries

No, McDonald's has not shipped packaging to the U.S. from other countries by mistake. The upside down logo is legit. For now.

1 day ago

taylor swift performing eras tour concert, a new class at weber state focuses on swift...

SAM HERRERA, KSL NEWSRADIO AND MIKE ANDERSON, KSL TV

Weber State University to offer class on Taylor Swift this fall

The Weber State University Taylor Swift class was offered for the first time this spring and filled up quickly.

3 days ago

Salt Lake City’s downtown skyline on Tuesday, Jan. 30, 2024. Jazz owner Ryan Smith continues to d...

Mariah Maynes

Utah Jazz owner hypes potential “sports-centered” downtown Salt Lake

Ryan Smith, the owner of the Utah Jazz, is hyping up the possibility of bringing more professional sports teams to Utah. 

3 days ago

Image of TV remote featuring Netflix button. Netflix may direct customers to stop paying for their ...

Samantha Delouya, CNN

You may lose access to your Netflix account if you’re paying through Apple

The update by Netflix comes after years of pushback from apps in Apples iOS App Store for taking a 30% cut of all in-app purchases.

4 days ago

Kenneth Mitchell, here in 2018, has died....

Megan Thomas, CNN

Kenneth Mitchell, ‘Star Trek’ and ‘Marvel’ actor, dead at 49

A native of Canada, Mitchell acquired more than 50 film and television credits over the course of his acting career. He was diagnosed with ALS in 2019.

5 days ago

Sponsored Articles

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

Clouds over a red rock vista in Hurricane, Utah...

Wasatch Property Management

Why Southern Utah is a Retirement Paradise

Retirement in southern Utah offers plenty of cultural and recreational opportunities. Find out all that this region has to offer.

Disney looks strong ahead of streaming launch