CLEVELAND, OH (WOIO) - Disney has announced it will pull its content from Netflix when the current agreement runs out in 2019.
Not shocking, the company also announced it will soon launch it's own streaming service to be picked up on devices like Apple TV and Roku sometime in 2019. Disney, which also owns EPSN, will also launch a multi-sport streaming service in early 2018. To make this possible Disney has bought up, and is now the majority stockholder in BAMTech a streaming technology company that was created by Major League Baseball. To become the majority owner of BAMTech Disney has paid a total of $2.58 billion in two separate purchases.
"This acquisition and the launch of our direct-to-consumer services mark an entirely new growth strategy for the Company, one that takes advantage of the incredible opportunity that changing technology provides us to leverage the strength of our great brands," Robert A. Iger, Chairman and Chief Executive Officer of The Walt Disney Company, said in a 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," according to the news release.
This is a move that many networks have made as viewers continue to cut the cable and instead pay for streaming services. So instead of Disney getting paid by Netflix to share animated movies and programming it's decided to go into business for itself.
ESPN has been hemorrhaging viewers from cable for a couple of years now because it's no longer the only way to watch live sports. Networks like NFL TV, MLB, and even college networks like the BIG10 Network all now offer streaming on TV's and devices. The ESPN service will stream more than 10,000 live professional, college and regional sports. The good news for people who are still on cable, you will be able to stream these events for free through the app, with authentication of your cable subscription.
The cost of cutting the cable does appear to be catching up to why people got away from cable to begin with. Consumers who were paying upwards of $100 a month for cable and got rid of it, are now finding that all of the $10 a month subscriptions are adding up.