>> One year after sending shock waves through the media industry, by sounding the alarm about cable cord cutters, Disney making a move to win back viewers who prefer streaming services over traditional cable and satellite TV. Walt Disney announcing Tuesday a $1 billion dollar stake in Bamtech, a video streaming technology company formed by and later spun off from Major League Baseball.
Disney planning to use the technology to launch its own subscription streaming video services for its media property which includes Disney and ABC channels. But it's ESPN that Disney's trying to salvage the most, as fleeing eyeballs have hit that unit particularly hard, when it comes to commanding top dollar from cable operators.
In a bid to stop the bleeding, Disney is going all in, launching a stand-alone subscription service, just for sports junkies. The announcement was part of Disney's quarterly results released late Tuesday, which continued to showcase tepid growth at ESPN but thanks to a string of successes at the box office like Captain America, Civil War, The Jungle Book,
>> One of these days you'll be someone's dinner.>> and Finding Dory, Disney topped sales and profit forecasts. Results also getting a boost from theme parks which had to overcome several challenges, including a public relations nightmare. A two-year old boy was found dead in June hours after being snatched by an alligator at the water's edge of Walt Disney World in Orlando, the most visited theme park in the world.
And now there's an outbreak of Zika in Florida. CEO Bob Eiger telling investors so far, ticket sales have not been impacted but investors still worried about Disney's future, pushing the stock lower this year.