In a bold move, Disney announces they are removing their movies from the popular streaming service, Netflix, and creating their own streaming service, to debut in 2019.
“This represents a big strategic shift for the company,” CEO Bob Iger said. “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.”
In early 2018, Disney will be debuting a streaming ESPN video service. This service will be streaming about 10,000 games.
The movies platform will take a little longer though, and debut in 2019. To help with the streaming services, Disney is purchasing more stock in BAM Tech, which it currently holds 33% ownership. They are increasing by 42%.
“The media landscape is increasingly defined by direct relationships between content creators and consumers, and our control of BAMTech’s full array of innovative technology will give us the power to forge those connections, along with the flexibility to quickly adapt to shifts in the market. 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,” Iger said.
This announcement comes days after Netflix announced it’s debt is high, and it’s stocks fell 3%.