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Disney faces digital dilemma despite streaming success

Media empire must sustain its costly online push while its lucrative legacy businesses decline

The Walt Disney Company, in its 97th year, has decided its television future lies in streaming. But what happens to its past?

Disney Plus has been a knockout success, signing up more than 70m subscribers in its first year to cement the Mickey Mouse empire as a serious competitor to Netflix, whose boss Reed Hastings had expected its new rival to secure 20m customers “at best”.

As the group re-engineers itself around video streaming, giving up lucrative licensing revenue, it must also manage the decline of its ageing TV channels and movie studios. Taking the long view, Bob Iger, executive chairman and former chief executive, recently told friends that once-mighty channels such as Disney-owned ABC were “over”, and that Disney’s future was streaming and theme parks. 

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