Walt Disney's plan to plunge into a crowded streaming services market could bring some initial pain, but the strength of the company's content is expected to help it pull through in the long run. Fred Katayama reports.
Walt Disney shares fell to their lowest in eight months after the company said it's starting its own streaming service. Disney announced the plan on Tuesday alongside quarterly results, which showed further subscription losses. It plans to team up with video streaming company BAMTech and offer everything in Disney's vast portfolio, including blockbusters such as "Frozen," "Spider Man," and "Star Wars," as well as a mix of streaming and pay TV. Manhattan Venture Partners' Santosh Rao: (SOUNDBITE) SANTOSH RAO, HEAD OF RESEARCH, MANHATTAN VENTURE PARTNERS (ENGLISH) SAYING: "I think it was a step that was expected. It was long expected. They are doing the right thing. They're gonna take a hit initially, but, in the long run, it's gonna play out. We'll see who wins. Netflix, Hulu and others are big competitors. Disney needs to catch up on that side. In the end they have great prperties. They have great content. It's just a question of how they can control distribution." As a result, Disney will stop providing content to Netflix starting in 2019.