Disney to Leave Netflix, Sets Date for Its Own SVOD Service

Matt Lopez
Aug 8, 2017 · 2 min read

Disney is breaking up with Netflix. The company announced that it would be ending its distribution agreement with the streaming giant — the first step in launching its own SVOD service, which the company said it would be rolling out in the next two years.

The company also announced plans to pay $1.58 billion for an additional 42 percent stake in BamTech, the streaming-video company founded by Major League Baseball. Robert Iger, Disney’s CEO, said the acquisition would help his company compete with streaming giants like Netflix and Amazon by introducing a video home base for all things Disney, reported The New York Times.

Disney plans to launch two SVOD services. The first one will offer ESPN programming, including hockey, tennis, baseball, and college sports and is expected to launch in 2018. Disney says that it will include “approximately 10,000 live regional, national, and international games and events a year, including Major League Baseball, National Hockey League, Major League Soccer, Grand Slam tennis, and college sports. Individual sport packages will also be available for purchase, including MLB.TV, NHL.TV and MLS Live.”

By the end of 2019, Disney plans to start a separate steaming service that will include Pixar movies, Disney Channel television series, and film library content. The 2019 slate, to go on the service, will include “Toy Story 4,” the sequel to “Frozen,” and “The Lion King” from Disney live-action.

“The media landscape is increasingly defined by direct relationships between content creators and consumers,” Iger said in a statement. “This acquisition and the launch of our direct-to-consumer services mark an entirely new growth strategy for the company.”

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