Walt Disney Co is developing an Internet subscription service and may consider trimming studio output after the division posted a 97 percent decline in operating income.

Disney last week announced it would buy a 30 percent stake in Hulu.com, bringing popular TV shows such as “Lost” and “Grey’s Anatomy” to the video Web site founded by General Electric’s NBC Universal and News Corp.

Disney became the third major U.S. broadcast network to take a stake in Hulu, which has emerged as one of the most popular online video destinations since its launch in 2007 but still lags Google Inc’s YouTube.

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