Disney will pull its movies from Netflix and start its own streaming services
- Disney announced during its latest earnings report it intends to pull all its movies from Netflix
- It also will launch an ESPN video streaming service in early 2018, including MLB, NHL and MLS content.
- There's also plans to launch a branded Disney direct to consumer streaming service in 2019
Disney wants to own a bigger piece of the streaming pie.
The company announced during its latest earnings report on Tuesday it intends to remove its movies from Netflix.
Instead, Disney plans to launch a branded direct-to-consumer streaming service in 2019 starting in the U.S. 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 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 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.
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.
"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."
Netflix stock dropped more than 5 percent upon announcement of the news.
This 25-year-old made $7,000 per month from her side hustle—while working a full-time job. Here's how
A plan to fix Social Security is being introduced in Congress. What it would mean for benefits
Nearly 2 in 3 women who left the workforce during Covid plan to return
Food companies could see $3 billion in monthly sales vanish, as low-income households get squeezed
Trump SPAC and Phunware stocks sink after ex-president touts social media plans