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Disney will pull its content from Netflix in 2019

Disney will pull its content from Netflix in 2019

Disney said it will launch an ESPN-branded streaming service in 2018, and a separate Disney-branded streaming service in 2019.

Yesterday, Disney announced that it had acquired a majority ownership of BAMTech, a company that specializes in streaming sports video, because their goal is launch an ESPN-branded video streaming service early next year. The new ESPN streaming service won't include National Basketball Association or NFL content, however, leading TheStreet's Eric Jhonsa to call it an "incremental move".

Netflix stock took a hit on the news, as shares were down more than three percent in after-hours trading.

A Netflix rep said the news doesn't affect the deal it has with Disney for the Marvel TV shows such as Luke Cage, Daredevil, and The Defenders.

Disney announced on Tuesday it will end its distribution partnership with Netflix and will create its in-house streaming service.

Disney will also look to make a "significant investment" in original movies and series that will only be available on the platform.

Disney's new service will be built using technology from Major League Baseball (MLB)-owned platform BAMTech, and will first be directly exclusively to USA viewers. Back in August 2016, Disney bought a 33 percent stake in the company. Disney also plans to invest in other movies, TV shows, and short-form content for the service. Disney says that it will include "approximately 10,000 live regional, national, and global games and events a year, including Major League Baseball, National Hockey League, Major League Soccer, Grand Slam tennis, and college sports". The company's overall third quarter earnings for this year were mixed, with earnings per share of $1.58 on revenue at $14.2 billion.

Disney Chief Executive Robert Iger said buying BAMTech and its innovative technology gives the company the power to forge connections with viewers and the flexibility to adapt to changes in a market defined by direct relationships between content creators and consumers.

Disney looks set to enter the media-streaming industry in a big way, thanks to a new acquisition that spells trouble for services like Netflix and Amazon Video.

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