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It Takes Deep Pockets to Fight Netflix

Disney and Discovery are spending hundreds of millions to push into streaming.

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Disney is readying a streaming service for the end of this year that will feature Star Wars and Marvel content.

Disney is readying a streaming service for the end of this year that will feature Star Wars and Marvel content.

 Photographer: Drew Angerer/Getty Images North America

Media giants are realizing what Netflix Inc. already knows: Streaming is expensive.

The costs are adding up as Walt Disney Co., WarnerMedia and Discovery Inc. build their own online video services to make up for shrinking cable and DVD businesses. Those investments, coupled with efforts to pull back content from Netflix and other online services, mean revenue and profit will be under pressure for years.