Disney announced during today’s earnings report that they have intentions of pulling all their movies from Netflix and instead, launching their own direct-to-consumer streaming service in 2019.
According to CNBC, Disney also plans on launching their own ESPN video streaming service in early 2018. The platform will feature approximately 10,000 sports events annually along with content from the MLB, NHL, MLS, collegiate sports, and tennis’ Grand Slam events.
Disney is buying a majority ownership of BAM Tech for $1.58 billion in order to power the services.
“This represents a big strategic shift for the company,” CEO Bob Iger told CNBC’s Julia Boorstin. “We felt that having control of a platform we’ve been very impressed with after buying 33 percent of it a year ago would give us control of our destiny.”
The market shows that Netflix stock dropped more than 5 percent upon the announcement of this news.