Disney Is Parting Ways With Netflix To Launch Its Own Streaming Service

Star Wars

The deal effectively ends the entertainment giant's agreement with Netflix for SVOD distribution of new releases.

Disney announced it was buying a majority $1.58 billion stake in BAMTech, the MLB Advanced Media service it initially took a $1 billion stake in a year ago.

The company made the announcements on Tuesday as it reported an nearly 9% fall in quarterly profits.

The Disney and ESPN streaming services will be available for purchase directly from Disney and ESPN, in app stores, and from authorized service providers. "The media landscape is increasingly defined by direct relationships between content creators and consumers", said Iger.

The news follows Disney's majority-share acquisition of BAMTech, a streaming technology and marketing company it first bought one third of a year ago for $1 billion.

Disney also announced a new ESPN streaming service which'll launch in early 2018. On Disney's earnings call, CEO Bob Iger clarified that the company hasn't decided how to deal with the Star Wars and Marvel franchises, and said it could choose to continue to license those movies to a service like Netflix.

Disney reached an exclusive partnership with Netflix previous year to bring Disney, Marvel, Lucasfilm, and Pixar movies to the streaming platform.

In an even bolder move, Disney is working on a standalone streaming service for ESPN.

The Walt Disney Company announced today it plans to launch their own digital streaming platform and their intention to end their current Netflix deal. "Original movies, TV shows, [and] short-form content" will be included in the service and it will be full with all the content from Disney, Pixar, and Disney's TV channels.

But this isn't because Disney has bad blood with Netflix. If you have a Netflix subscription, start bingeing Air Bud: Seventh Inning Fetch, Air Bud: Spikes Back and Air Bud World Pup one more time, before it's too late. To help make both platforms a reality, Disney is acquiring majority ownership of BAMTech, LLC - a global leader in direct-to-consumer streaming technology. To power this new venture, Disney bought a 33% stake in BAM Tech for $1.58 billion.



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