Disney is ditching Netflix.
Walt Disney Company is launching two streaming services, one for sports and the other for film and TV. The company is ending its current deal with Netflix to develop its own content platforms.
ESPN will be one of the two services offered, starting in 2018. The sports-centered platform is expected to feature 10,000 sporting events per year, including MLB games, the Los Angeles Times reports. Set to debut in 2019, the other platform will feature Disney-branded film and televisions shows, including platform-exclusive content.
According to the Los Angeles Times, Disney is trying to appeal to young audiences that are choosing Netflix and other digital platforms over traditional media. The bold move to woo these so-called “cord-cutters” shows how entertainment companies are trying address a dynamic business landscape.
This comes at a time when Netflix’s market dominance is making the entertainment industry uneasy, according to the Los Angeles Times. Studios have historically been happy to license films to the streaming giant for big checks, but have upended the conventional business model in doing so.
Disney’s decision sets up a direct rivalry with Netflix when its content is pulled in 2019. According to the Los Angeles Times, Disney is positioning itself to compete by purchasing a majority stake in Bamtech, a streaming video company that is developing the two platforms.
This article was featured in the InsideHook newsletter. Sign up now.
