According to the outlet, Disney and Pixar films will be leaving the streaming service and the new platform will house all Disney films starting in 2019. With this move, Disney will be ending its distribution deal with Netflix. In addition to a Disney-branded OTT platform, the company also confirmed plans to unveil an ESPN-branded streaming service early next year. That service would potentially offer live streaming of games from the NBA, MLB, college sports, and tennis, as well as bonus sports related content. Disney CEO Bob Iger released a statement that laid out Disney's vision for its streaming future.
"We're building direct-to-consumer Disney service".
With the acquisition, Disney's streaming agreement with Netflix will end at the beginning of 2019.
Also on Tuesday, Disney also announced the purchase of a majority stake in video-streaming company that is expected to help it jumpstart its new streaming service. Disney says the service will be available in "multiple markets" outside the U.S.as well, taking advantage of Disney's global name recognition. "We continue to do business with Disney on many other fronts including Marvel TV". Disney was already among the biggest investment in BAMTech, and now it is investing $1.58 billion in the platform.
Disney is to pull its movies from Netflix and take on the streaming company with the launch of its own service from 2019, showing family-friendly fare such as the Toy Story films, Frozen and its forthcoming sequel, and The Lion King.
As it stands, Disney recently entered into a major streaming deal with Hulu that grants the latter company the SVOD rights for a massive quantity of older movies like Mulan. Since previous year, all of Disney's theatrical releases have gone to Netflix (search your app for Captain America: Civil War, Pete's Dragon, Zootopia, The BFG, , Moana, and The Jungle Book).
However, despite Bob Iger's claims that Disney still had a "good relationship" with Netflix, the studio will nearly certainly be eager to make sure that all of their output is available from the same platform.