On Tuesday, Disney announced that their movies would be pulled from Netflix. Why? In 2019 they are planning on starting their own streaming service. ESPN will also start their own steaming service in early 2018.
Disney will do this with the help of BAMTech, a streaming company owned by MLBAM, Major League Baseball’s internet streaming company, that the happiest place on earth will be acquiring a majority of. Disney currently owns a stake, but will add 42 percent more for $1.58 billion.
The details are sketchy, but Bob Iger said that any Disney or Pixar branded, it will likely appear on their own service. This will include movies and shows that were exclusive to Netflix. However, it is not clear if movies like the Star Wars saga or the Marvel Cinematic Universe films will leave Netflix.
The news shocked investors and it showed. Shares of the online entertainment streaming service dropped 4 percent in after hours trading, according to Movie Fone.
Trying to figure out what all this means, Frozen 2 will likely be on the Disney service only, but Star Wars: Episode IX may not be. Both are set to release in 2019. However, both the Star Wars and Marvel films could be Disney exclusive. However, this will not affect shows on Hulu, like Mulan or Pocahontas. The Mouse owns a stake in Hulu, so that would take money away from them if they removed those films.
Why is Disney doing this? Shares of the Happiest Place on Earth fell 3 percent following its quarterly revenue report. That came in at $180 million less than expected, totaling $14.2 billion. They hope that both the exclusive movie streaming and ESPN’s sporting event streaming service will turn those numbers around.
And this shows a problem for people who are trying to cut the cord of cable or satellite television service. Many people may have added Netflix or Hulu, or another of the many streaming services out there to their current television bill, but people who cut the ties from traditional television service look at adding Hulu, Netflix, and Amazon Prime are now finding that to get all the content they want, that could include adding service for ESPN, Disney, HBO, Showtime, WWE, MLB, and more. To get the streaming services that cover everything on cable currently, one could spend a lot more on individual packages. And then, for television that does not offer standalone streaming, services like PlayStation Vue or Hulu TV are needed, along with a HDTV antenna, prices are going to go up. And watch out if the internet service plan has download limits. Exceed the plan, and users will have to pay more per gig. So, unless users have unlimited internet downloads, all this streaming is going to cost them.
What do you think of Disney pulling out of Netflix to start their own streaming service? Share your thoughts in the comments below.
By Cletus Dillwood
Photo Courtesy of Disney