Disney Friendship Gives Netflix A Boost
LOS GATOS (CBS SF) - Netflix isn't done flying to record heights, as its stock soared Wednesday following Disney CEO Bob Iger earnings conference comments that he considers Netflix more of a friend than foe, and that products like Netflix are attractive because they offer a user-friendly and often times cheaper way for people to watch television.
Iger meanwhile is defending Disney after a disappointing quarter, which is resulting in its shares diving.
ESPN was a prime focus during the call, with the Disney-owned network seeing some subscriber losses. Iger says Disney is mindful about trends in younger audiences, but notes that most of the subscriber losses are coming from multi-channel households. Iger didn't mention making ESPN available directly to consumers after earlier suggesting that's a possibility a few years down the road.
Netflix shares surged a day after breaking new ground on its announcement it will expand its streaming service to Japan in September, its first Asian country. Disney shares meanwhile wereg pummeled.
