
Disney Is Yanking Its Content Off Netflix -- Here's the New Rival Streaming Service It's Launching
Shares of Netflix (NFLX) - Get Report were sinking over 3.8% in pre-market trading on Wednesday after the Walt Disney Company (DIS) - Get Report stated that it would remove its content from the video streaming giant's platform starting with its new slate of movies in 2019.
Disney will instead launch its own branded, direct-to-consumer streaming service in 2019 featuring Disney movies and TV shows, including content produced exclusively for the service. Netflix first secured the valuable deal for Disney content back in 2012, but Disney content didn't start appearing on Netflix until 2016.
Netflix currently has several original series based on Marvel characters owned by Disney, including Daredevil, Jessica Jones and Luke Cage; Disney CEO Bob Iger said in an interview on CNBC on Tuesday that those shows would continue to be produced and additional content possibly developed in conjunction with Netflix.
"We have a good relationship with Netflix," Iger told CNBC.
When asked whether the cost of Disney's new service would be comparable to what Netflix charges, Iger said Disney has time to decide on pricing and is not ready to announce that yet. He also indicated that Disney would spend less than the $6 billion a year on content for the service that Netflix is currently expending.
Disney announced it had increased its stake in technology platform BAMTech to a majority ownership, making these new streaming services possible. On Tuesday, the world's largest entertainment company also announced a new ESPN video streaming service in early 2018, featuring content from the MLB, NHL, MLS, collegiate sports and tennis' Grand Slam events.
Shares of Disney were falling in after-hours trading after the multinational media company reported mixed third quarter financial results.
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