Why Disney Will End Up Removing Content from Netflix

Image credit: Walt Disney Pictures

Better catch those Disney films on Netflix while you still can.

Disney is set to remove content that falls under their company umbrella, which potentially includes Marvel and Star Wars, from Netflix and other streaming services. Why? Well, why license out content to other streaming services… when you could hold it for your own?

Yes, Disney is in the process of crafting their own streaming service. The company is forking out $US1.58 billion to become majority holder of streaming tech comp BAMTech, owned by internet company MLBA, which is in turn owned by Major League Baseball.

The BAMTech acquisition will enable Disney to launch their very own streaming service in 2019 and an ESPN streaming service in early 2018.

Streaming services have become more popular as traditional TV sees it’s popularity declining. This is why Disney are trying to start their own to diversify into the more modern times rather than relying on traditional forms of income. There are 117.6 million Netflix users alone so it is a big business to go into. As it is getting more popular, people are using a broadband comparison site to make sure their internet is quick enough to stream what they want.

During the company’s quarterly earnings report, Disney CEO Bob Iger told analysts that this was the start of “a strategic shift in the way we distribute our content.”

“We’ve got this unbelievably passionate base of Disney consumers worldwide, and in virtually all of our businesses — except theme parks — we’ve never had the opportunity to connect with them directly or know who they are,” Igor said. “It’s high time we got into the business… Once we do, the monetisation possibilities are extraordinary for this company.”

While it’s still unclear as to what will end up happening with Marvel and Star Wars content on Netflix – “There’s been talk about launching a proprietary Marvel service and Star Wars service,” Iger has said – it’s clear that the 2012 contract Disney inked with Netflix for new releases is well and truly done. Marvel-Netflix shows, by the way, such as Daredevil and Luke Cage, will not be affected.

2019 releases that will hit the new streaming service include Toy Story 4, Frozen 2 and Jon Favreau’s The Lion King.

It’s still early days on this development. Stay tuned as more details come to light.

The streaming announcements came as Disney reported this quarter’s revenue of $US14.2 billion, which is around $US180 million under what Wall Street had forecast. Nevertheless, profits where 3 cents higher than projections, coming in at $US1.58 per share.

Sources: THR, Deadline

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