Disney has decided to break its distribution agreement for its films through Netflix to break through in the streaming business .
According to the portals Variety and The Hollywood Reporter , the company will launch a streamingplatform with the help of ESPN next year, and another service in the same format but with the name of Disney the following year.
To do so, the company will acquire the majority of BAMTech , a streaming technology industry owned by the Major League Baseball Internet company.
Also, THR reports that Disney already owns BAMTech technology, but it will pay $ 1.58 trillion for 42% more of the shares.
ESPN has lost subscribers in recent years , and for months has been predicted to have an autonomous online site , but ending its distribution agreement with Netflix starting in 2019 is seen as a rather unexpected move. It was precisely for this reason that Netflix’s profits declined 4% after the news was released.
Another of ESPN’s problems is the stratospheric programming costs, the few advertising revenue and the termination losses for the employees who resigned. As for the part of transmission of its contents through the ABC television, the chain did not obtain greater profits and equally spent considerable way in the part of programming.
Meanwhile, Disney CEO Bob Iger called these initiatives „a strategic move to distribute their own content . ” He also said that if a Pixar or Disney movie will likely appear exclusively on the streaming platform , which will also have shows and tapes made specifically for broadcast there.
Despite the news, Iger did not detail what would happen to Marvel and the Star Wars movies. However, if you leave Disney on Netflix then you would lose all Lucas Films productions like Indiana Jones and Star Wars, aswell as the Marvel films , including Thor, Iron Man and The Avengers . There is also the question of what will happen with all the series they are producing together, for example The Defenders, Jessica Jones, Iron Fistand Daredevil.
Both the news of the launch of the platform of streaming through ESPN and Disney arose from the report that made the company this Thursday of their profits, which fell 3% (or 180 million dollars), leaving their total profits At 14.2 billion dollars.