Disney to Start Its Own Streaming Services, Plans to Quit Netflix

During the presentation of the latest earnings report, Disney has announced to end its deal with the streaming media company Netflix. This is a result of company’s intention to launch its own branded direct-to-consumer streaming services in 2019 starting in the U.S. and moving globally.

There will be two streaming services, one for Disney and Pixar brands and another for live sports. This will eliminate Disney’s dependency on cable companies, instead, it will charge consumers directly to access to its popular movies and sporting events.

Disney CEO Robert Iger said, “The company is considering whether it should continue licensing Marvel and Star Wars movies to outside services like Netflix, move them into the Disney app or develop individual services for them.”

“The Disney service will be available in “multiple markets” outside the US as well, taking advantage of Disney’s global name recognition,” he added.

Disney & Netflix

Netflix will continue to keep and stream all the Disney movies until the start of Disney’s own streaming services in 2019, which means Netflix would be able to stream the next two Star Wars movies but will miss out on the new trilogy’s final installment.

Commenting on this, Netflix spokesperson said, “We continue to do business with the Walt Disney Company on many fronts, including our ongoing deal with Marvel TV.”

Starting with new streaming service in 2019, Disney’s forthcoming movies like “Toy Story 4,” “Frozen 2,” and the live-action movie “The Lion King” will be served on the new platform.

For the streaming services to go live, Walt Disney Company has to acquire a majority ownership of BAM Tech, a streaming arm of Major League Baseball. Moving in this direction, Disney is buying 75 percent stake in the company for $1.58 billion which is now pending regulatory approval.

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