Disney’s ditching Netflix to launch its own streaming service

Disney is ditching Netflix to launch its own
streaming service. The company announced plans to end its distribution
agreement with Netflix and launch its own streaming service sometime in 2019. Let’s dig a little into why… Disney invested $1 billion in BAMTech last
year giving it a 33% minority stake. Then this week, Disney announced an additional
$1.58 billion investment and now owns 75% of the company that will power its shift into
streaming. BAMTech who powers streaming for MLB, HBO
NOW, NHL, WWE and now Disney’s and ESPN’s upcoming streaming services is valued at $3.75
billion following Disney’s new investment. BAMTech spun-out of MLB’s digital media
business to become its own company in August of 2015. The business has since grown beyond being
a streaming technology provider for baseball. So basically, instead of building their own
in-house platform, Disney invested heavily in technology, tested on other media properties
first, that they can then use to build out their own subscription service. Disney doing standalone streaming is huge
news, but it’s not the first time the company has dabbled with digital delivery of its content… It has its own Disney Movies Anywhere app
and dipped its toe into the streaming business with its UK-based subscription video platform
DisneyLife back in 2015. But, Disney’s deal to own the infrastructure
player behind its next big investments in streaming is a smart move. While its flagship Disney and Pixar movies
will bring in subscribers, Disney has already begun the development process at the Disney
Channel and Studio to create original TV shows and movies that will be made exclusively for
the new service. Essentially, Disney is mimicking the Netflix
model here, with an attempt to create must-see shows and films that you can’t find elsewhere. If you’re wondering why Marvel and Star
Wars weren’t mentioned in Disney’s upcoming streaming service, that’s because they might
be getting their own branded services instead. The decision is not yet set in stone, but
with BAMTech on the backend, Disney has the technical capabilities to make that happen.. If Disney wanted to go the route of standalone
streaming services for all its brands, it has more than enough content to do it. There are TV shows like ABC’s Marvel’s
Agents of SHIELD and Marvel’s Inhumans, Freeform’s Cloak and Dagger and New Warriors,
Disney XD’s Star Wars Rebels, online content, plus all the movies, and more when other licensing
deals expire. According to Disney’s CEO Bob Iger, the company
has no plans to pull its Marvel TV shows from Netflix – adding that Disney and Netflix
have had a “great relationship”. He also said that the possibility still exists
that Disney will license other titles to Netflix down the road.

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