The costs of producing new content and building the app will be another key factor in investors’ thinking. Analyst Nathanson on Tuesday projected Disney’s direct-to-consumer segment would lose $3.8 billion in fiscal 2019 as it builds its service and incurs losses from Hulu. The company is also expected to lose out on licensing revenue when it pulls its content from Netflix. Disney, in February, said it expects to forgo about $150 million in licensing income this fiscal year as it yanks its movies from Netflix.

Source: Los Angeles Times April 11, 2019 00:34 UTC