Nextflix's Stocks Sink By 4% As Disney Pulls Out Its Movies

Tomas Mccoy
August 12, 2017

Disney also announced it will launch its own streaming services, and plans to acquire a majority stake in BAMTech, a major streaming and marketing service.

The new ESPN service will feature about 10,000 live games and events per year from Major League Baseball, the National Hockey League, Major League Soccer and others, Disney said. Netflix's current Marvel TV shows, however, will stay put.

Disney wants its own Netflix, a place where all of its content can reside and be streamed for a monthly fee that goes straight into its own coffers.

"We'll also be making a substantial investment in original movies, original television series, and short form content for this platform, produced by our studio, Disney Interactive and Disney Channel teams", said Iger. The company also has a service called Disney Movies Anywhere for those who purchase physical copies of films or connect with partnered content providers. NFLX, -1.46% and pull its movies from the service and launch a Disney branded streaming service in 2019. 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.

One might imagine Disney is working hard on a brand name for their future streaming service, but even the best brand development companies wouldn't be able to come up with anything better than "Disney" itself.

The previously announced ESPN service will be "more robust than the one we had anticipated", according to the company, and will include "approximately 10,000 live regional, national, and global games and events a year, including Major League Baseball, National Hockey League, Major League Soccer, Grand Slam tennis, and college sports".

Disney acquired a 33% stake in BAMTech previous year, but has said that it has now invested a further $1.6 billion to boost its stake to 75% and will acquire control of the company. Both studios are home to the huge franchise which includes "The Star Wars" and "Avengers" respectively.

The movies and TV streaming service will be usable in 2019.

As a result of this move, the share value of Netflix has fallen by 4%.

"Netflix, which lately has been focusing on its own exclusive programing, said it would continue to do business with Disney globally, including keeping its exclusive shows from Marvel television". Consumers are also more comfortable using pay-TV alternatives than they were in the past, and there is a greater chance consumers will sign up for multiple OTT services rather than just look for one provider - cord-cutting has reduced monthly spend on video entertainment, so potentially there are funds that have been "freed up" for a new service.

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