Netflix (NFLX - Get Report) fell more than 4% in Wednesday premarket trading after Walt Disney Co.  (DIS - Get Report) said it would pull its content from the streaming service.

Netflix was marked 4.06% lower in premarket trading, indicated to open at $171.11, after closing at $178.36 before Disney made the announcement. Shares were on track for their worst fall since the end of June. Netflix has gained 14% over the past three months.

In a series of announcements Tuesday, Disney said that it was planning to develop its own streaming service to sell its television shows, movies and sporting events directly to consumers.

Disney's licensing deal with Netflix expires in 2019. Netflix on Tuesday said that subscribers would have access to Disney films through the end of 2019 and that it will continue to license content from Marvel TV.

Disney is responsible for roughly 30% of all Netflix viewing in the U.S., Bloomberg reported, citing a company executive.

Disney sticks it to Netflix.
Disney sticks it to Netflix.

As part of its quarterly earnings, Disney, the world's largest entertainment company, announced a deal to take a majority stake in BAMTech, the technology platform that already powers its digital services. Disney will pay $1.58 billion to acquire 42% of BAMTech, a sprawling operation originally created by Major League Baseball. A year ago, Disney purchased a 33% stake in BAMTech for $1 billion.

CEO Bob Iger said that controlling BAMTech will allow Disney to roll-out two direct-to-consumer services that may eventually upend the media business.

By laying the groundwork to terminate its studio licensing deal with Netflix, Iger said that by 2019 the company will launch a Disney-branded streaming service that will feature its enormous library of movies and television shows. Iger said the service would include programming from Disney studios and Pixar but not Marvel or Lucas Films, makers of "Star Wars."

Netflix is facing increased competition as more companies launch their own streaming services. Amazon (AMZN - Get Report) offers streaming as part of its Prime Membership and HBO has a service to stream its shows.

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