The president abruptly walked out of a meeting Wednesday, saying he would not negotiate with Democrats while they continue to investigate him.Politicsread more
Talk about 5G is everywhere right now, from the trade-war with China to the ban on Huawei. Here's what 5G is and why it matters.Technologyread more
When the Fed releases minutes of its last meeting on Wednesday afternoon, it risks sounding a bit hawkish.Market Insiderread more
Ireland's privacy watchdog, which leads supervision of Google in the EU, launched an inquiry into the firm's online advertising practices.Technologyread more
These are the stocks posting the largest moves midday.Market Insiderread more
Americans in certain areas of the country have significantly higher average credit scores than others. Experian's annual State of Credit report shows the average score in each...Spendread more
More voters in five key industrial states disapprove than approve of Trump's handling of trade — 56% to 41%, according to a report.Politicsread more
Morgan Stanley caused a stir with its "bear case" scenario of $10. Now, Citi is getting in on the act.Investingread more
Target's CEO thinks the retail industry is shaking out to show clear winners and losers. Those companies that are investing in stores and online are winners, he said.Retailread more
A put credit spread is a good, risk-conscious way to trade the volatile semiconductor cohort, says TradingAnalysis.com founder Todd Gordon.Trading Nationread more
Some analysts were concerned that it's taking longer for Pure Storage to sell as the company aims to win larger deals.Technologyread more
Disney isn't launching its new streaming service until later this year, but investors are already learning the economic challenges of the business.
The media company said in a filing on Friday that its investment in Hulu was the primary contributor to a $580 million loss in equity investments in the fiscal year that ended Sept. 30. Additionally, Disney lost $469 million in its direct-to consumer-segment, largely from BAMtech, the streaming technology that powers ESPN+ and other over-the-top services.
That's more than $1 billion associated with streaming, the area where CEO Bob Iger is focusing his attention. Disney will debut its Disney+ offering later in 2019 to better compete with Netflix and Amazon.
Losses in streaming will likely surge in the early days of the venture, as content and technology costs spike, said Rich Greenfield, an analyst at BTIG. Disney has also yet to assume control of another 30 percent of Hulu, part of its $71.3 billion deal for the majority of 21st Century Fox. If Disney were to acquire Comcast's 30 percent stake in Hulu, that would further increase operating losses.
"Streaming requires a strong stomach for losses, especially as you are playing catch-up," Greenfield said in an interview.
Disney is hoping that, over time, millions of paying customers will subscribe to Disney+ for its new original content and library of Disney movies and TV shows. Pricing hasn't been disclosed. Netflix, which announced its quarterly earnings on Thursday, has 139 million global subscribers and just informed them that it's raising prices by 13 percent to 18 percent.
Disney announced its acquisition of a majority stake in BAMtech (formerly owned by Major League Baseball) in 2017, so its report for 2018 is the first to show consolidated earnings results for the company.
Streaming is a hard place to make money, even for Netflix. While the company consistently posts positive operating income, it has burned cash for years, raising new debt and spending the revenue it generates on new content. Netflix could spend well over $10 billion for movies and shows in 2019, according to some analyst estimates.
Disney's media networks, which include ESPN, ABC, Disney Channel and others, brought in $7.3 billion in operating income for 2018. Investors will be paying close attention to that number as streaming becomes a bigger focus and consumers are given another lower-cost entertainment option in the move away from traditional cable.
"I think Wall Street is at least accepting of the fact that we're doing this, that it's the most important thing we're doing," Iger told Barron's in an interview published earlier this month. "And while I won't say they're cheering us on, they're definitely giving us the room to prove that we can do it."
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.