What Disney Leaving Netflix Means For The Future of Streaming Services
The House of Mouse announced plans to launch its own branded direct-to-consumer streaming service in 2019.
Disney signed a landmark deal with Netflix for it to become the exclusive distributor of its properties (Marvel, Disney, ABC) — that is until today. The company announced yesterday during its latest earnings report that it intends to move its movies from Netflix.
While this means that televised programming such as Marvel’s The Defenders and Agents of S.H.I.E.L.D. aren’t being threatened to be removed — films such as Dr. Strange and Iron Man will no longer be available on Netflix come 2019.
CEO Bob Iger told CNBC that Disney had a “good relationship” with Netflix, but decided to exercise an option to move its content off the platform. Other film titles include Pixar titles, as Iger says that Disney movies will be available through the end of 2018.
The move for Disney is to create its own platform to house all Disney movies going forward. This includes new film Toy Story 4, Frozen 2 and the upcoming live-action The Lion King. Disney will also be making a “significant investment” in exclusive movies and television series for its new venture.
In addition to that, the company will also launch its own ESPN video streaming service in early 2018. Featuring about 10,000 sporting events each year, the as-yet-to-be titled service will have content from the NHL, MLS, MLB, collegiate sports and tennis’ Grand Slam events. “This represents a big strategic shift for the company,” Iger said to CNBC. “We felt that having control of a platform we’ve been very impressed with after buying 33 percent of it a year ago would give us control of our destiny.”
Is Netflix able to recover from this move? We shall see as the streaming service’s stock dropped more than 5 percent upon announcement of the news.