Disney Launching Streaming Service

disney & netflic

 

If you haven’t heard yet, Disney will be pulling its content from Netflix and are starting their own streaming service. Announced yesterday on August 8th, Disney will be purchasing the majority ownership of BAMTech, the MLB’s spin-off media company. The company [Disney] has plans to launch an ESPN streaming servicing beginning in 2018.

Disney paid 1.58 billion for majority ownership of BAMTech. They had previously acquired 33% stake last August for $1 billion. The ESPN streaming platform will include 10,000 events a year including a multitude of sport events from baseball to hockey, tennis and college sports.

In 2019, there are plans for Disney to also launch its own streaming platform. The service will include Pixar movies, Disney Channel series and original programming from DIsney Junior and Disney XD as well.

Disney’s cable networks, such as ESPN, make up the majority of the company’s earnings. Due to a shift in how viewers consumer entertinament now, though, the earnings have fallen in previous years. The new services will allows DIsney to connect directly with the viewers/consumers. A smart strategy by DIsney as they enter the competitive streaming service to take advantage of the consumers’ viewing habits.

“This acquisition and the launch of our direct-to-consumer services mark an entirely new growth strategy for the company, one that takes advantage of the incredible opportunity that changing technology provides us to leverage the strength of our great brands,” said CEO Bob Iger in a statement.

According to CEO Bob Iger, he had a “good relationship” with Netflix. However, he opted to remove content off the streaming platform in order to start Disney’s own. Both Disney and Pixar movies will be removed from Netflix but will be available through the end of 2018 on the streaming platform. Disney movies coming out afterward in 2019, however, will only be available for U.S. viewers on their streaming service exclusively. This includes flicks such as “Toy Story 4”, the sequel to “Frozen” and the much anticipated “Lion King” live action movie.

 

 

Source(s): CNBC, Forbes