Disney cuts Netflix, goes direct to viewers

Just when you thought there was no stopping Netflix, a curveball gets thrown their way — and this time, Disney is making the toss. 

In what’s been deemed as “one of the boldest moves by an entertainment company to address the changing media landscape” by the LA Times, Disney will be launching two video streaming services that will offer sports, film and TV shows as content. 

Robert A. Iger, Disney’s chief executive shared with international press that this move marked a ‘very, very significant and strategic shift’ for the company. 

First to go live will be the ESPN-like service which is set to premiere next year and will feature 10,000 sporting events annually.

The Disney-branded streaming service is slated to launch in 2019 and will carry Disney and Pixar movies and television shows. Among the exclusive Disney shows which will be offered on the new streaming service includes a sequel to “Frozen,” a live-action version of “The Lion King” and “Toy Story 4.”

Currently Netflix holds the rights to new Disney-branded films however the company will soon be taking back those rights. The company however is still undecided if it will continue to license its Marvel and Lucasfilm (“Star Wars”) labels or launch a standalone service for the two brands. 

What is most interesting is that Robert was quoted in a New York Times report to have said that Disney is looking to make a ‘significant’ investment in original movies and shows for the service which will not carry any advertising. 

Disney still has not revealed the price of its new subscription service however Robert told the NTY that its goal was to keep its price point low enough to get more subscribers but ‘not so low that it would cannibalise traditional cable and satellite subscriptions.’


BEST OF GLOBAL DIGITAL MARKETING Conference 2017 (http://best-marketing.eu/events/my/)

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