Disney reassures investors that streaming will not break bank

Walt Disney Co’s quest to become a digital-streaming giant will be an expensive endeavor, but the company can handle it.

That was the message of its latest earnings report, which exceeded Wall Street estimates and sent the shares up as much as 2.4 per cent in late trading.

Though profit fell 13 per cent in the fiscal second quarter, that was better than what analysts predicted. Sales also topped estimates in the period, which ended in March.

The company is launching Disney+ on November 12, marking its biggest strategy shift in decades.

The $6.99-a-month streaming platform will compete with Netflix Inc as a direct-to-consumer product, aiming to lure families with its Marvel, Pixar and Star Wars content.