Disney will dump its exclusive Netflix deal in 2019 as part of a 'big strategic shift'
On Tuesday, the company announced it would launch its own Disney-branded streaming service (in addition to an ESPN one). This Netflix-like service will become the "exclusive home" for subscription streaming of Disney and Pixar's live action and animated movies, starting in 2019.
The reason?
Disney thinks that the future of entertainment will be defined by "direct relationships between content creators and consumers."
In other words: No more middle men. Disney needs to own its own streaming services.
That is bad news for Netflix, which saw its marquee movie deal with Disney come online this year. Starting in 2017, Netflix was the exclusive subscription streaming home of Disney's movies. Now it has been replaced by Disney's own ambitions.
This might be one reason that Netflix made its first-ever acquisition on Monday: a cult comic-book publisher called Millarworld that has been responsible for Kick-Ass, Kingsman, and Old Man Logan. Netflix might be seeing a world where intellectual property powerhouses like Disney become a lot more reluctant to make deals.
Here's the relevant piece of Disney's statement:
"The new Disney-branded service will become the exclusive home in the U.S. for subscription-video-on-demand viewing of the newest live action and animated movies from Disney and Pixar, beginning with the 2019 theatrical slate, which includes Toy Story 4, the sequel to Frozen, and The Lion King from Disney live-action, along with other highly anticipated movies. Disney will also make a significant investment in an annual slate of original movies, TV shows, short-form content and other Disney-branded exclusives for the service. Additionally, the service will feature a vast collection of library content, including Disney and Pixar movies and Disney Channel, Disney Junior and Disney XD television programming."