Disney Cuts Ties with Netflix and Promises New Streaming Platform
Disney has made headlines today because it decided to part ways with Netflix. This news is shocking because no one expected this to happen, especially since Disney itself stated a couple of months ago that its partnership with Netflix is doing great. Well, it looks like Disney will stop sharing revenue with Netflix because it wants a bigger piece of the pie.
ESPN Streaming Service
Taking in consideration the fact that Disney is the biggest movie studio in the world, it becomes quite clear why Netflix’s shares dropped by five percent ever since this news came out. Furthermore, Disney’s CEO announced that it plans on launching a special streaming service of its own somewhere around 2018. This streaming service will be available only in the US at first, but it will see a global launch after a couple of months. What’s really interesting is that Disney claims that its upcoming streaming service will bet set in ESPN’s platform. Many people were confused by this because ESPN is mainly focused on sports, but Disney announced that it will have a special section within the app.
Disney Branded Streaming Service and BAM Technology
However, many might not know this but Disney actually holds a major share in BAM Technology. Back in 2016, Disney decided to invest $1.58 billion in BAM Technology which translates to 33 percent stake in the company. Worth mentioning is that this news was confirmed by MLB Advanced Media.
In order to make this situation clearer for everyone, Bob Iger who is Disney’s CEO stated the following: “This represents a big strategic shift for the company. We felt that having control of a platform we’ve been very impressed with after buying 33 percent of it a year ago would give us control of our destiny”.
From the looks of it, the future looks bright for Disney. The company is going to have its own streaming platform in 2019 and it will be able to attract subscribers with upcoming movies such as Frozen 2, Toy Story 4 and the live-adaptation of The Lion King.