Disney dropping Netflix, eyes own streaming service

Nope, it’s just the quality of Netflix’s content.

It will include: Disney movies, Pixar movies, previously run Disney-owned movies and television shows (which, yes, covers a lot of ground), and a lot of new content, too. The new service will be the only source where viewers can watch Disney programing, which was once a popular option on Netflix. The “Mouse House” announced that they’re ending their short relationship with Netflix to start their own direct-to consumer streaming service starting in 2019.

Is Netflix able to recover from this move?

Reports a year ago pointed to Disney buying Netflix as a solution to gaining access to young adult audiences rejecting expensive pay TV subscriptions, but no deal was reached.

“It arguably reduces the consumer value of Netflix, which remains the biggest strategic challenge to linear networks in the expanded basic bundle long term”, Credit Suisse analyst Omar Sheikh wrote in a report.

Disney (DIS) shares are on track for their largest single-day drop in more than a year on Wednesday, hours after the company said struggles at ESPN contributed to a major decline in operating income at its cable networks.

Disney said ESPN’s problems included higher programming costs, lower ad revenue and costs associated with severance packages for departing employees.

By driving technological innovations, BAMTech aspires to become the leading distributor of direct-to-consumer live entertainment and the premier provider of video streaming solutions globally. What happens to the Marvel and Star Wars properties after this date is still unclear. Well, another test of the streaming giant’s staying power is upon us. The CEO of the company, Bob detailed that every movie that is made by Disney or Pixar will be shown only on the new service. “There is evidence from Starz that losing Disney movie output doesn’t necessarily have any visible impact on subscriber growth”, Juenger said.

In an attempt to gain independence from Disney, Netflix is buying Millar Comics for an undisclosed sum estimated between $50m and $100m (£39m-£77m), in its first acquisition in 20 years.

The news comes as part of Disney’s announcement that it has acquired a majority ownership of BAMTech, LLC, as well as plans to launch an ESPN-branded video streaming service in 2018. The service will provide users with original content developed by Walt Disney Studios.

There will also be original and library programming, films and telemovies on the service when it debuts in late 2019.

As far as we can tell, you’ve still got plenty of time to catch up on ABC’s “Scandal” and Freeform’s “Pretty Little Liars” on Netflix and Hulu.