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Disney CEO Bob Iger finally announced details for the long-awaited Disney streaming bundle that executives have been teasing for months. The bundle is meant to be an alternative to Hollywood rival Netflix.
Details: For $12.99 monthly, consumers can access Disney+, ESPN+ and the ad-supported version of Hulu. The deal will be available when Disney+ launches on Nov. 12. The combined package will be cheaper than Netflix's premium package, which is $13.99 a month.
Driving the news: The update came as Disney executives walked investors through the high-level results of its third quarter earnings, which missed investor expectations.
- The company's massive success at the box office last quarter wasn't enough to save the entertainment giant from an earnings and revenue loss. The entertainment giant's stock price fell roughly 5% in after-hours trading Tuesday.
Be smart: It was the first full quarter that Disney reported earnings after acquiring much of 21st Century Fox in March.
The big picture: Investors had high hopes for Disney ahead of earnings, with many expecting the company to report high top-line growth in response to major successes at the box office and high attendance at its domestic theme parks over Memorial Day weekend.
- Yes, but: Operating costs were high and cut into the company's profit margins. This was largely a result of investments Disney made in its new streaming products and paying down its 21st Century Fox acquisition.
Our thought bubble: Tuesday's report sent a message to investors that if Disney's bet on streaming doesn't pan out, its traditional businesses may not be enough to protect the company from long-term industry changes.
What's next: Executives said they expect operating losses to continue to widen next quarter due to more investments in its streaming products.