Disney's big move into online video

The Walt Disney Co reported third-quarter results that reflected tough times for its TV business and said it's taking big steps in online video to adapt to changing consumer viewing habits.

The world's largest entertainment company said on Tuesday it will pay $1 billion for a one-third stake in BAMTech Inc, a technology and streaming business formed by the Major League Baseball, and launch a new web-based ESPN service this year.

The company also said networks including ESPN and the Disney Channel will be part of a new online video service planned by AT&T Inc's DirecTV division.