Disney Is Cutting Ties With Netflix To Start Its Own Streaming Service

Disney Is Cutting Ties With Netflix To Start Its Own Streaming Service

Disney ditching Netflix will coincide with the launch of the conglomerate's own, Disney-branded streaming product.

Yesterday, Disney said it will be pulling its movies from Netflix and will launch a Disney streaming service of its own in 2019.

Instead, its "family focused" films - including the upcoming Frozen 2, Toy Story 4 and live-action Lion King - will be available to the consumer on Disney's own streaming service, which will launch first in the USA and then globally.

"We're very proud of the content distribution innovations driven by MLBAM and BAMTech over the past 15 years", said Commissioner of Baseball Robert D. Manfred, Jr.

Disney said it will launch an ESPN video streaming service in 2018, which will include MLB, NHL and MLS content.

Walt Disney Co (NYSE:DIS) dropped an anvil on Netflix, Inc.

Millar Comics includes the likes of Kick-Ass and Kingsman: Secret Service, which have all been made into major motion pictures. Analyst Pachter opines that Disney will eventually yank all of its content from Netflix - including ABC and Disney Channel shows - and put them on its own upcoming service.

With this strategic shift, Disney will end its distribution agreement with Netflix for subscription streaming of new releases, beginning with the 2019 calendar year theatrical slate.

As a result of this move, the share value of Netflix has fallen by 4%.

Of course, this news has left many people with a bitter taste in their mouths, especially the cord-cutting generation who opt to purchase subscriptions to Netflix or other services to avoid the high cost of cable packages.

On the heels of a $6 billion investment into original content earlier in the year, Netflix, the well-known video on demand platform, is viciously out-performing rivals. Well, another test of the streaming giant's staying power is upon us.

"It obviously has suffered a bit from the overall impact of digital technology and new forms of media consumption on the ecosystem".

Matthew Thorton at SunTrust Robinson Humphrey called Disney's announcement "a modest" but manageable negative for Netflix.

Disney has been in the process of ramping up its streaming ability since it acquired a 33 percent stake in BAMTech, a marketing and steaming service, for $1 billion in 2016, reported CNN. In 2019, we assume that these films, and other library content, will roll off to Disney's DTC offering, as they exit their existing windows on NFLX.

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