The company has announced it intends to start its own streaming services.
In an announcement made during Disney’s latest earnings report, the company has unveiled plans to launch a branded direct-to-consumer streaming service in 2019, starting in the US and expanding globally.
CEO Bob Iger told CNBC’s Julia Boorstin Disney had a “good relationship” with Netflix, but decided to exercise an option to move its content off the platform. Movies to be removed include Disney as well as Pixar’s titles, according to Bob. Netflix said Disney movies will be available through the end of 2018 on its platform. Marvel TV shows will remain. Netflix stock dropped more than 5% upon announcement of the news.
The new platform will be the home for all Disney movies going forward, starting with the 2019 theatrical slate which includes Toy Story 4, Frozen 2, and the upcoming live-action The Lion King. It will also be making a significant investment in exclusive movies and television series for the new platform.
To power the service, Disney is buying a majority ownership of BAM Tech for $1.58b. Disney bought a 33% stake in the company, which was spun off from digital media company MLB Advanced Media, in August 2016.