DTC bundle priced at $12.99 as Disney announces strong Q3 | Major Businesses | Business | News | Rapid TV News
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In a move that throws the gauntlet to its rivals, especially Netflix, Disney has announced that its DTC services Disney+, ESPN+ and Hulu are to be available in a bundle priced at just $12.99.

disney 12April2019The announcement came as Disney revealed a strong third quarter of 2019 where it showed major gains in its direct-to-consumer business as well as in broadcast and media and networks business lines.
For the for its third fiscal quarter ended 29 June 2019 – reflecting the consolidation of the acquisition of Twenty-First Century Fox (21CF) and activities related to the Hulu OTT service whose share of ownership it increased — the company posted revenues of $20,245 billion, up 33% annually, driving net income of $1.437 billion down 51% compared with the period a year ago.

Direct-to-consumer and international revenues for the quarter exploded, increasing from $827 million in Q3 2018 to $3.858 billion yet segment operating loss increased from $168 million to $553 million. The increase in operating loss was due to the consolidation of Hulu, the ramp up of investment in ESPN+, which was launched in April 2018 and costs associated with the upcoming launch of Disney+.

Media networks revenues for the quarter increased 21% to $6.7 billion and segment operating income increased 7% to $2.1 billion. Cable Networks revenues for the quarter was up 24% year-on-year to $4.5 billion and operating increased 15% to $1.6 billion, due to the consolidation of 21CF businesses (primarily the FX and National Geographic networks) and an increase at ESPN. Broadcasting revenues for the quarter increased 16% to $2.2 billion but operating income decreased 17% annually to $307 million.

“Our third-quarter results reflect our efforts to effectively integrate the 21st Century Fox assets to enhance and advance our strategic transformation,” said The Walt Disney Company chairman and chief executive officer Bob Iger commenting on the Q3 results.

On the analysts’ call for the announcement, Iger confirmed that the £12.99 DTC bundle would launch on 12 November 2019, ,making it cheaper or approximately the same price as the expected rivals in the category.