Babble.com stops updating content
The Walt Disney Company (DIS) quietly shut down its parenting blog, Babble.com, in the middle of last month, according to TechCrunch. Disney acquired Babble.com in 2011 for ~$40 million–$45 million, Business Insider reported.
The purchase of Babble was viewed as meant to help Disney beef up its family-focused digital publishing work, particularly in the young parents segment. Now, though, it seems like Disney has other priorities, such as expanding into the video streaming market, and that seems to call for doing away with some operations to create room for the new project.
“As Disney Digital Network evolves to support the launch of Disney’s upcoming streaming service, Disney+, Babble.com ceased to update editorial content as of December 14, 2018,” Disney said in a statement provided to TechCrunch.
Disney is gearing up to challenge Netflix
Disney+ is the name of Disney’s Netflix-like video streaming service, which is expected to launch later this year. Tied to the launch of Disney+, Disney is purchasing a portfolio of entertainment assets from 21st Century Fox (FOX) for $71.3 billion and removing its shows and movies from Netflix (NFLX). Disney is set to join the growing list of traditional media companies that have sought to counter Netflix and similar online video providers that are fueling cord-cutting. AT&T (T) and Dish Network (DISH) have also created their own Netflix challengers known as DIRECT NOW and SlingTV, respectively.
Disney generated $14.3 billion in revenue in its fourth quarter of fiscal 2018, which ended in September 2018.