The company announced Tuesday it will acquire the BAMTech media company, which it'll use to create an ESPN live-streaming service and a Disney-branded video-on-demand service.
Netflix said in a statement that "U.S. Netflix members will have access to Disney films on the service through the end of 2019, including all new films that are shown theatrically through the end of 2018".
The deal means Disney will end its distribution agreement with Netflix for subscription streaming of new releases in 2019.
Greenfield is expecting Disney to lose up to $2 billion a year as it foregoes third-party revenue and invests heavily to build up content and start a streaming service from scratch.
Disney has had to adapt to a changing landscape as have other media companies, where the high cost of cable and satellite television coupled with the wide availability of streaming services has caused many US households to stop paying for cable services. It was also mentioned that this video streaming service will provide the people with 10,000 sports events every year including contents from NHL, MLS, MLB, and collegiate sports events.
"W$3 e're also announcing a major strategic shift in the way we distribute our content". The company is now paying out over $1.5 billion to own 75% of Bamtech - the video distribution company created by Major League Baseball that is working on building both streaming services. "It's been clear to us for a while with the future of this industry will be forged by direct relationships between content creators and consumers", said Iger on the earnings call (transcript courtesy of Seeking Alpha).
Deportivo La Coruna remain keen on Arsenal outcast Lucas Perez
The 21 year old is usually a left winger but can also play wing-back and left-back, a position that looks weak for Newcastle. However, there is a worry that this decision only continues Newcastle's struggles in the transfer market .
"While this will be a negative headline for Netflix, we expect the actual impact on the subscriber base to be minimal", wrote Piper Jaffray analyst Michael Olson in a note to investors. Nope, it's just the quality of Netflix's content.
"Disney's announcement was light on details and did not sound terribly well hashed out".
Disney and ESPN are walking a bit of a tightrope here, because they have to balance the legacy TV business with this new direct to consumer streaming OTT model during this transitional phase.
Back when services like Netflix and Hulu were new, pundits and cord cutters predicted an avalanche of back catalogs and killer new shows would make cable companies, with their sky-high bills and ever-increasing pricing, completely obsolete.
The company's entertainment empire stretches from Disney and Pixar animation studios, home to blockbusters such as "Frozen" and "Jungle Book", to "Star Wars" producer Lucasfilm and Marvel - the studio behind "Iron Man" and "Spider-Man".
This is not Disney's first attempt to go directly to the consumer.