Disney will offer $12.99 bundle for Disney+, Hulu, ESPN package

Disney will offer $12.99 bundle for Disney+, Hulu, ESPN package

Disney shares were up 29% this year through Tuesday's close, compared with 15% for the S&P 500 Index, even though the Burbank, California-based company had warned of high costs in the years ahead as it presses into streaming. That number was, however, lower than the $21.4 billion Wall Street had expected after the company's busy quarter. But HBO alone costs $14.99 a month, suggesting that it will be hard to compete with Disney's price.

Walt Disney Co.'s purchase of 21st Century Fox was meant to help the entertainment giant transform itself for the streaming future.

With Hulu + Live TV, the company also offers a package of 60-plus live television channels meant to compete with cable and satellite services for $44.99 a month.

As a result, Disney has scrapped scrapped much of Fox's film development slate, with Iger tasking Disney film brass to take the Fox slate, in Iger's words, "in a new direction, with an all new development slate that will focus on a select group of properties".

"Some of the other misses seem to be related to the integration of Fox", said analyst Jim Nail at Forrester.

These stemmed from its consolidation of Hulu, spending on the new Disney+ streaming platform and the ESPN+ streaming service.

The company said Tuesday that it will offer a bundle that includes Disney+, ESPN+ and commercial-supported Hulu for $12.99 a month.

The theme parks unit's overall operating income rose 4% to US$1.7bn, but declined at parks in the US.

The opening of Galaxy's Edge, the Star Wars land at Disneyland in California, at the end of May was another big moment in the quarter.

Disney's media networks business, which now includes Fox channels such as FX and National Geographic, saw operating income grow 7% to $2.1 billion in the quarter.

Last quarter, the company released "Avengers: Endgame", the highest-grossing movie of all time, as well as "Aladdin" and "Toy Story 4". Disney's box office revenues also surpassed $US8 billion for the year, breaking the record for total annual box office sales for a movie studio. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy.

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