Disney’s Star Wars buzz is wearing off as the Mouse House reported lackluster quarterly results due to their television unit. However, the multimedia company is fighting back with the same saving grace from before as they announced a new deal with Rian Johnson for a new Star Wars trilogy.
One of the main reason investors were keen in sticking with Disney is that of their characters and brands, a reason that’s becoming costly in the long run. The company is reportedly not faring very well with their current tv lineup.
Disney shares rose to 1 percent after the Star Wars announcement this Thursday. Both subscriber activity and ad revenue were seen as subpar on ESPN, one of Disney’s powerhouse TV companies. Total revenue for both ESPN and Disney Channel failed to hit analyst’s predictions of $4.06 billion coming to a total of $3.95 billion in the fourth quarter.
As a response to the problematic situation, the company will cater to family-friendly streaming services in the hopes of effectively competing with other streaming forces such as Netflix.
Chief executive at Disney, Bob Iger, states that they will focus on providing streamlined experiences in 2019 via their own platform.
„We believe creating a direct-to-consumer relationship is vital to the future of our media businesses, and it’s our highest priority this year,” Iger told analysts on a conference call.
He also states the subscriptions for the new platform will be priced „substantially low” in comparison to Netflix. Disney also has plans to launch a sports-focused service spinoff of ESPN called ESPN Plus in early 2018.
The company also reportedly held talks with Twenty-First Century Fox in regards to a potential acquisition of entertainment assets such as the Fox movie studio and the FX channel.
With Star Wars: The Last Jedi premiering in December, it remains to be seen if the Mouse House will be able to scrape a financial victory this year.
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