Looks like Disney caught the “streaming” bug!! Beginning in 2019 all of the Disney content currently streaming from on Netflix will be transitioned to their own streaming channel. A move that was inevitable by Disney and due to their earnings report is what prompted the departure.
Disney and Netflix entered into a multi-year agreement some years ago for distribution of its content and word has it that Disney he launching 2 streaming networks.
Netflix is already feeling the affects of the Disney announcement as their stocks decreased by 5%.
We shall see how this bit of “boombastick” news plays out between the two companies.
Read more as reported by Inside The Magic:
Disney announced today, during the company’s latest earnings report, that it will no longer be partnering with Netflix and instead will be launching a streaming service of its own.
The Disney-branded direct-to-consumer streaming service will launch some time in 2019 and will become the exclusive home in the U.S. for on-demand viewing of the latest live-action and animated Disney and Pixar films. As a result, Disney will end its distribution agreement with Netflix at the start of 2019.
This announcement came on the heels of Disney acquiring majority ownership of BAMTech, a global leader in direct-to-consumer streaming technology and marketing services, for $1.58 billion. Disney, which previously owned a 33% stake in BAMTech, added an additional 42% today.
“The media landscape is increasingly defined by direct relationships between content creators and consumers, and our control of BAMTech’s full array of innovative technology will give us the power to forge those connections, along with the flexibility to quickly adapt to shifts in the market,” said Bob Iger, Chairman and Chief Executive Officer at Disney. “This acquisition and the launch of our direct-to-consumer services mark an entirely new growth strategy for the company, one that takes advantage of the incredible opportunity that changing technology provides us to leverage the strength of our great brands.”
It is yet unclear as to how Marvel and Lucasfilm products will be affected by this shift in strategy. As of right now, Disney has only committed to Disney and Pixar films being a part of this new service. I German mentioned that there has been talk of creating separate services for Marvel and Lucasfilm, but the amount of content is a concern there. They have also considered including the two properties in the already announced service. Disney will announce their decision on that situation at a later date.
The new service will follow an ESPN video streaming platform that will launch in early 2018 and will feature approximately 10,000 live regional, national and international games and events per year, including content from NHL, MLB, MLS and more.
Source: Inside The Magic