Disney, the largest creator of kids based content, which adults equally enjoy, is moving away from Netflix to launch its own streaming in channel in a bid to increase its revenue and directly connect with the audience. iKarmik, brings to you the latest updates on Disney’s plans for the future as part of its coverage on the latest happenings in Hollywood.
Media and entertainment giant Walt Disney Company on Tuesday announced a move to grow its subscription and streaming empire as it plans to end its relationship with Netflix and ramp up its online ESPN offerings.
Disney said no new releases will be available on Netflix after 2019. Instead, Disney will launch its own video streaming service that year for consumers to directly access the company’s movies and shows. To help its cause, Disney announced it was buying a majority ownership in BAMTech, a streaming video company, for more than $1.5 billion.
“Today we announced a strategic shift in the way we distribute our content,” said Robert Iger, Chairman and Chief Executive, The Walt Disney Company in a statement. “The media landscape is increasingly defined by direct relationships between content creators and consumers.”
The Disney-branded film and TV offering, set to debut in 2019, would include original content developed by Walt Disney Studios. Disney Chief Executive Robert Iger also said “No one is better positioned to lead the industry into this dynamic new era, and we’re accelerating our strategy to be at the forefront of this transformation,. He further added that “monetization possibilities are extraordinary” for Disney once it launches the new streaming services, whose prices have not been disclosed.
“If you look at Disney’s businesses, except for the theme parks, virtually all of the businesses touch consumers through third parties, everything from big box retailers to the owners of motion-picture theatres” he said, calling this an opportunity to reach the consumer directly.
The Disney branded streaming service will include exclusive films and TV shows, a prospect that could make it a must-have for some consumers because of the many popular brands in Disney’s stable. Over the last decade or so, Disney’s multibillion-dollar acquisitions of Pixar Animation Studios, Marvel Entertainment and Lucasfilm have given it a trove of valuable intellectual property. Disney’s lucrative franchises include “Star Wars,” “The Avengers” and “Toy Story.”
The stand-alone subscription services would appeal to younger audiences who are turning away from traditional media and flocking to Netflix and other digital platforms. The ESPN service, which would be available next year, is expected to feature 10,000 sporting events annually, among them Major League Baseball games.
iKarmik says, Disney it seems wants a bigger piece of the pie, than it currently gets from Netflix due to which it is launching its own streaming channel. Will other content creators and studios follow the same path is what needs to be seen (pun intended).