Disney wants to continue growing. One of the biggest entertaining movie providers for Netflix is ending their contract. Within a few days, news began to travel that Disney will be making their movies unavailable on Netflix. Disney is now going to launch its own streaming service in 2019. According to some, the streaming service will be available in the US initially and expand internationally at a later date.
Disney’s CEO Bob Iger talked with CNBC and expressed they continue to have a “good relationship” with Netflix, but having their streaming service allows for the company to grow and “represents a big strategic shift for the company” according to Iger. However, despite misleading previous reports, the truth is these animated movies will not leave Netflix totally. Marvel and Star Wars movies will still be available on Netflix after Disney’s streaming service begins in the U.S. All Disney and Pixar movies will continue to be available until 2018 including those coming soon from which are mentioned, “Toy Story 4,” “Frozen 2” and other acclaimed movies.
This news has caused plenty of negative feedback from Netflix-members.Those at home who don’t have Netflix but do have children could purchase Disney’s streaming service monthly without any problem. The issue for Disney comes with the audience who pays for Netflix (over 5 million subscribers according to USA Today) and is unwilling to pay for another platform just for animated children movies.
Finally, Igor mentioned video streaming specifically for ESPN, featuring around 10,000 sports events every year in all categories, including MLB, NHL and MLS. Disney has been making a huge investment to make these streaming services possible by buying 33 percent of BAMTech, an investment of $1.58 billion.