The writedown of the premium TV business reflects "years of cord-cutting as viewers move to cheaper online streaming services."
The streaming giant's shares jumped 12% after it indicated it would return any excess cash to shareholders through buybacks.
The studio's departure from the traditional distribution model could "fundamentally change the way people watch movies years after coronavirus fades.”
“The real bright spot has been our direct-to-consumer business, which is key to the future of our company."
The short-form video streaming service raised a total of $1.8 billion in funding but failed to attract subscribers.
The reorganization comes as the coronavirus pandemic has closed parks and stalled film production.
“Like the rest of the entertainment industry, we have not been immune to the significant impact of the pandemic."
As "consumers get through the initial shock of COVID and social restrictions," Netflix sees subscriber growth slowing to 2.5 million in the third quarter.
“Disney has gone from being on top of the world a la Lion King, to feeling like Eeyore stuck in the middle of a perfect storm with no end in sight."
The streaming device maker says people sheltering at home has "resulted in an acceleration in new account growth and an increase in viewing.”
The record label believes "consumer adoption of paid streaming services still has significant potential for growth.”
Netflix's "operations abroad look as promising as ever ... while clouds are beginning to gather in the company's home market."
