Disney leaving Netflix to start its own streaming service

Nick Sanchez
August 12, 2017

The announcement also meant that with direct to consumer offerings in the works - for ESPN and Disney related content - content that had been distributed through Netflix would be pulled.

"We view the ESPN announcement as probably Disney's best chance of at least limiting, if not reversing, the margin pressure on its network business from subscriber and viewership attrition", Cowen and Co analysts said.

Disney's successful partnership with Netflix has led to a number of shows based on Marvel comics characters.

Still, it seems like Disney doesn't believe it will need to add these titles to generate demand for its Disney/Pixar streaming service.

Even with the launch of ESPN's subscription sports service, Disney said OTT packages for individual sports will also be available for purchase, including MLB.TV, NHL.TV and MLS Live. Viewers will have to wait and see whether Disney's "declaration of independence" pays off, and what exciting new measures Netflix will take to handle the blow. Like Disney's upcoming project, the BBC created its own streaming service called "BritBox" which features classic episodes of "Doctor Who".

We'll also tap into a vast library of movies and television shows that have been made by the company, the Channel and the Studio over the years, and we'll invest significantly in original movies and television shows exclusively for this subscription service. Although this is the case, Reuters reported that "U.S. Netflix members will have access to Disney films on the service through the end of 2019, including all new films that are shown theatrically through the end of 2018".

Disney is cutting ties with Netflix, and it's going to start its own streaming services to compete. With the company's $1.58 billion investment in streaming technology infrastructure provider BAMTech, which gave it a controlling interest, it's able to go where the market takes them when it comes to streaming.

Several days before Disney officially announced its bold move, Netflix already made moves of its own.

Rogue One: A Star Wars Story - Disney was one of the major production companies behind the recent Star Wars films, so the newest in the franchise might get blasted off Netflix. It will be the exclusive USA home for SVOD viewing of Disney and Pixar content. Titles like Toy Story 4, the sequel to Frozen, and The Lion King from Disney live-action, along with other "highly-anticipated movies" were highlighted as the type of content that will be featured. Nope, it's just the quality of Netflix's content. Disney will draw on its own content from its film and television catalog for its consumer channel, and offer a sports service which could fill a gap by delivering live sporting events.

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