“Disney wants to own a bigger piece of the streaming pie,” Michelle Castillo reports for CNBC. “The company announced during its latest earnings report on Tuesday it intends to remove its movies from Netflix.”
“Disney plans to launch a branded direct-to-consumer streaming service in 2019 starting in the U.S. and expanding globally,” Castillo reports. “CEO Bob Iger told CNBC’s Julia Boorstin [that] 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 Iger. Netflix said Disney movies will be available through the end of 2018 on its platform. Marvel TV shows will remain.”
“The new platform will be the home for all Disney movies going forward, starting with the 2019 theatrical slate,” Castillo reports. “The company will also launch its own ESPN video streaming service in early 2018. The platform, which will feature about 10,000 sporting events each year, will have content from the MLB, NHL, MLS, collegiate sports and tennis’ Grand Slam events. To power the services, Disney is buying a majority ownership of BAM Tech for $1.58 billion. Disney bought a 33 percent stake in the company, which was spun off from digital media company MLB Advanced Media, in August 2016.”
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MacDailyNews Take: Bad news for Netflix. Good news for something forthcoming from Apple?
Netflix, which lost $2.97 (-1.64%) during regular trading today is down another $5.07 (-2.84%) to $173.29 in after hours trading on the news.
