Disney Streaming Service Can Succeed, But Will Arrive Too Late to Slow Netflix

When I first read on Tuesday that The Walt Disney Co.  (DIS) won't renew its movie-licensing deals with Netflix Inc.  (NFLX) when it expires at decade's end, and instead put its films on a rival streaming service, my first thought was, "this is a bit like pulling the plug on Skynet after it's become self-aware."

In hindsight, that was a little off. It's more like pulling the plug after Skynet is self-aware, and then waiting another two years to react to Skynet's moves. The market's realization of how belated Disney's move will be explains why Netflix fell a mere 1.5% in response to it -- shares are still up 42% on the year -- much less than the 3.9% drop Disney recorded in the wake of a disappointing June quarter report....1017 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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