Disney Details Launch Of ESPN And Disney Streaming Services, Plans End Of Netflix Deal

The Walt Disney Co. announced along with quarterly earnings Tuesday that it will launch an ESPN streaming service in 2018 and a Disney direct-to-consumers offering in 2019, and end its distribution deal with Netflix Inc. after 2018. ESPN said it would buy another 42% of the BAMTech streaming platform for $1.58 billion, after buying a third of the company for $1 billion last year. "This acquisition and the launch of our direct-to-consumer services mark an entirely new growth strategy for the company, one that takes advantage of the incredible opportunity that changing technology provides us to leverage the strength of our great brands," Chief Executive Robert Iger said in Disney's earnings announcement. Disney announced net income of $2.37 billion, or $1.51 a share, on revenue of $14.24 billion. After adjustments, Disney claimed profit of $1.58 a share. Analysts on average expected adjusted earnings of $1.55 a share on revenue of $14.46 billion, according to FactSet. Disney shares fell about 3% in immediate after-hours action following the announcements, and Netflix stock also fell about 3%.