Disney announced today a plan to roll back their deal with Netflix, removing all Disney-owned content from the streaming service starting in 2019.
From Disney’s press release:
With this strategic shift, Disney will end its distribution agreement with Netflix for subscription streaming of new releases, beginning with the 2019 calendar year theatrical slate.
From what we can understand, this means that we’ll start seeing Disney remove content from Netflix, and also not continue to offer future titles to stream through the service. Instead Disney plans to build their own streaming service, by purchasing a large stake in BAMTech, paying $1.58 billion dollars for 42% of the company, valuing it at about 3.77 billion dollars, about 1/20th of Netflix’s market cap.
Part of this deal also includes building out a streaming option for ESPN, something that cord cutters have long been wondering about, as to when the sports network would be available for a streaming-only option. The sports network continues to hemorrhage subscribers, and as subsequently had to lay off on and off-screen talent.
This is part of a much bigger trend, though, with individual networks relying less on the major third party streaming services, instead more interested in getting their own services launched. At some point, the sheer number of options available will be far too costly to subscribe to them all, but our assumption is that consumer trends in television and entertainment is heading towards a la carte, so this is probably for the best. Rather than paying $60-100 a month for one package with a lot of filler content, it will be easier to pay $30-50 a month just for what you want.
What are your thoughts on this? Let us know in the comments.