What Happens to This Important Disney Business After the Disney+ Launch
The launch of Disney's (NYSE: DIS) new streaming service, Disney+, ushers in a new age at the media and entertainment giant. Streaming took center stage during the company's fourth-quarter earnings call, and that speaks to the potential impact its direct-to-consumer segment will have on its overall business going forward. Not only will the company start to see meaningful revenue growth in the segment from the launch of Disney+, but it'll also have a noticeable impact on another important operating segment: its media networks division.
Media networks, which includes its cable channels and ABC broadcast networks, accounted for half of Disney's operating income in fiscal 2019. The launch of Disney+, as well as increased investment in Hulu and ESPN+, will show itself in the media networks segment through its impact on cable subscribers, Disney's ability to continue increasing affiliate fees, and licensing revenue from selling content to the streaming services.
Disney head of direct-to-consumer Kevin Mayer presenting Disney+. Image source: Walt Disney.
Source Fool.com
