Disney announced this week that it will be ending its distribution deal with Netflix and move towards the launch of its own streaming service.
Despite securing the deal in 2012, the Disney content only started hitting Netflix last year, hopefully meaning that the loss won’t be too substantial for the front-running provider.
And while this may be a minor hit to their future competitor, it’s absolutely a natural progression in Disney’s content distribution. Already famous for vaulting classics and taking other steps – like for-sale-only, no renting – when corralling consumers, it makes sense that the company is adding options for more controlled distribution and, in turn, bigger profits.
Netflix won’t be losing its Disney lineup right away with Disney saying it plans to cut off new material starting with the studio’s 2019 slate while letting Netflix keep exiting films through the end of that year.
What does that mean for films and shows that aren’t Disney proper but fall under the Disney umbrella? “We continue to do business with the Walt Disney Company on many fronts, including our ongoing deal with Marvel TV,” reported a spokesperson for Netflix. What that means for Marvel and other Disney owned material not produced by the streaming giant remains to be seen.
To facilitate this new arm of the mouse’s entertainment empire, Disney is upping its stake in BAMTech to the tune of over $1.5 billion. With a B. The added investment gives them %75 of the MLB-founded streaming platform. “This acquisition and the launch of our direct-to-consumer services mark an entirely new growth strategy for the company,” said Disney CEO Bob Iger in a statement, adding, “One that takes advantage of the incredible opportunity that changing technology provides us to leverage the strength of our great brands.”
So, thoughts? Is consolidating their content good for fans? Or is this just another thing you’ll have to pay for? Click on over to Facebook and tell us your thoughts!