Disney needs cash flow from its legacy businesses to support the growth of its streaming offering. Fiscal fourth-quarter results didn't disappoint.
With Disney's ( DIS - Get Report ) fiscal fourth-quarter results on Thursday after the close, investors focused on the media giant's "Direct-to-Consumer (DTC) & International" segment, which includes Disney+, ESPN+, and Hulu. Unsurprisingly, the company's significant investments to ramp up its online streaming video business had a negative impact on its margins. The 21st Century Fox (21CF) acquisition in March boosted revenue by 34% year over year, but cash flow decreased to $1.7 billion, down 55% year over year.