Disney to End Netflix Deal and Launch Its Own Streaming Services ➝

Todd Spangler, reporting for Variety:

Disney is ending its distribution agreement with Netflix for new movie releases, while it’s also buying majority ownership of BAMTech — the streaming-video company founded by Major League Baseball — in a $1.58 billion deal.

The moves set a clear course for the media giant to launch Netflix-style direct-to-consumer internet services from ESPN and Disney. Disney said will end its distribution agreement with Netflix for subscription streaming of new movie releases, beginning with the 2019 theatrical slate.

I’m certain Netflix customers aren’t happy about the service losing a major content provider, but I think this is the right move for Disney. They own the rights to a massive library filled with high quality video content — they’d be foolish for not building their own streaming service. It’s kind of amazing that they hadn’t built one already.

(Via Nick Heer.)

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