Direct-to-consumer and international revenues for the quarter exploded, increasing from $827 million in Q3 2018 to $3.858 billion yet segment operating loss increased from $168 million to $553 million. The increase in operating loss was due to the consolidation of Hulu the ramp up of investment in ESPN+, which was launched in April 2018 and costs associated with the upcoming launches of Disney+.
Media networks revenues for the quarter increased 21% to $6.7 billion and segment operating income increased 7% to $2.1 billion. Cable Networks revenues for the quarter was up 24% year-on-year to $4.5 billion and operating increased 15% to $1.6 billion, due to the consolidation of 21CF businesses (primarily the FX and National Geographic networks) and an increase at ESPN. Broadcasting revenues for the quarter increased 16% to $2.2 billion but operating income decreased 17% annually to $307 million.
On the analysts’ call for the announcement, Iger confirmed that the £12.99 DTC bundle would launch on 12 November 2019, ,making it cheaper or approximately the same price as the expected rivals in the category.