New updates reveal that Disney is about to pull all its movies from Netflix. According to reports, Disney has announced that it is pulling its movies from Netflix. It is reported that this is primarily because Disney is planning on launching its own streaming service very soon.
According to a recent report by The Hollywood Reporter, the withdrawal announcement from Disney was accompanied by the release of a mixed quarterly earnings report. The update also noted that quarterly earnings report revealed a 4 percent sunken stock in after-hours trading. It is believed that the recent announcement partly has something to do with the earnings report.
However, on Tuesday, Disney made an announcement stating that it has decided to pull out its movies from Netflix. The announcement also clearly stated that Disney will be launching its own streaming service very soon. According to a report from Macrumors, Disney’s streaming service is not expected to launch until 2019 but the company stated that it is already preparing to launch an ESPN streaming service at the beginning of 2018.
The report also states that in other to achieve its objectives, the company plans to acquire a majority of BAMTech, the internet company owned by Major League Baseball, the streaming technology company owned by MLBAM. Although Disney already has a stake in BAMTech, the company reported intends to throw in $1.58 billion for an additional 42 percent.
The recent announcement which is expected to take effect in 2019 came as a surprise to many investors. It is reported that Netflix shares sunk about 4 percent on the news in after-hours trading. Disney CEO, Bob Iger believes that the withdrawal is “a strategic shift in the way we distribute our content.” Meanwhile, Disney executives revealed on Tuesday that a multi-year deal putting Mulan, Pocahontas and many others on Hulu will be completely unaffected by the upcoming streaming service.
The CEO added that Disney is yet to engage in any discussion with regards to the new ESPN service with the network’s TV distributors. Disney Tuesday’s announcement was accompanied by its quarterly earnings report. It is reported that while the shares of the company sunk 3 percent in after-hours trading after the conglomerate announced a quarterly revenue of $14.2 billion, it reported a profit of $1.58 per share, which is said to be three cents beyond expectation.