Disney has announced that it will remove its films from Netflix in 2019 and launch its own streaming service later that same year. The House of Mouse made the announcement during a recent earnings report.
It plans to introduce an ESPN-branded sports streaming service in 2018, with a general consumer service following the year later.
To launch its new service, Disney bought a 43-percent stake in BAMTech, which owns ESPN, for $1.58 billion. BAMTech is a company that focuses on direct-to-consumer streaming technology and marketing services, data analytics, and commerce management. This automatically raises Disney’s stake in the company to 75% having previously held a 33-percent stake in the company under an agreement that included an option to acquire a majority stake over several years.
Bob Iger, the CEO of Disney said: “The streaming services will give Disney much greater control over our own destiny in a rapidly changing market. The move is an entirely new growth strategy for the company.”
As a result of this decision, Disney will stop providing new movies to Netflix in 2019 and begin its own streaming service. The Disney-branded film and TV offering would include original content developed by Walt Disney Studios.
Netflix stock dropped following the announcement of the news.