Disney removing its films from Netflix,
Walt Disney made a big digital move Tuesday, announcing plans for its own direct-to-consumer streaming service to compete with Netflix — and plans to cut Netflix out of much of its content mix.
The new Disney-branded subscription service, expected to launch in 2019, will be the exclusive home for new animated and live-action theatrical Disney and Pixar films. Whether films in the Star Wars and Marvel franchise will appear on this new service is undetermined, Disney Chairman and CEO Robert Iger said in a conference call about its thirdquarter financials with analysts Tuesday.
“The disposition (of those films), we have not determined yet” and could be licensed to “a pay service such as Netflix,” Iger said.
Shares of Netflix, which had a multiyear deal for Disney’s films beginning in 2016, took an immediate hit after Disney broke the news, declining about 4% to $171.80. It rebounded some Tuesday, closing down 1.64% to $178.36.
Netflix will continue to have all new Disney releases including Marvel and Star Wars films through 2018. Disney’s scheduled 2019 releases currently include Frozen 2, Toy Story 4 and a live-action version of The Lion King, Iger said.
The new service will be “unlike anything else in the market,” Iger said in the conference call. “These announcements mark the beginning of an entirely new growth strategy for the company.”
Disney shares rose slightly Tuesday, closing up 0.59% to $106.98.