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Disney gains on blockbuster hits

Still, the high cost of content and launching a new streaming service meant the media giant missed profit expectations
Disney gains on blockbuster hits

In the battle for the most valuable film and television content, Walt Disney (US:DIS) looks like a clear winner. It boasts half of the top 10 highest grossing films ever and the biggest three films of the year so far which helped lift studio revenues by a fifth in the three months to June 2018.

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Big hits are vital if Disney is going to fend off the competitive advances of Netflix (US:NFLX), but they don’t come cheap. Spending on premium content and the group’s new streaming service meant the group missed consensus expectations in these numbers, despite a 23 per cent increase in net profits.