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It’s never pretty when friends become foes, and that’s exactly what’s about to happen with erstwhile allies Netflix and Disney. The Mouse House has announced that it will end its distribution deal with Netflix in the near future. The move is a precursor to Disney launching its own streaming service.

The Disney-funded Netflix competitor will launch in 2019. This announcement is a double-blow for Netflix, as its distribution agreement with Disney only went into effect last year, and now it faces the prospect of losing popular Disney content as well as taking on a powerful new competitor with a vast library of TV shows and films.

Netflix will begin losing access to Disney titles beginning with the studios slate of films in 2019, and the streamer will retain rights to all Disney content through that year’s end. A spokesperson for Netflix tried to put a positive spin on the announcement:

“We continue to do business with the Walt Disney Company on many fronts, including our ongoing deal with Marvel TV,”

How big of a loss is this for Netflix, and how big of a potential gain for Disney?

[via The Verge]

4 Responses to “Disney to Ditch Netflix and Launch Competing Service”

  1. Member [Join Now]
    Shemp Howard [shemp-howard]

    …It’s about time!

    When will other content creators follow the same strategy?

  2. Visitor [Join Now]
    Danofive0 [visitor]

    I did not think it would take this long to happen. Disney has the money.
    I think in the next 3-5 years. Others will do the same. And Netflix will end up being like a TV channel. With there own stuff.
    It will not be long until you will have more streaming channels they you will know what to do with. Are keep up with.

    • Member [Join Now]

      The problem is very few have the content to draw subscribers to their service – HBO Disney and maybe ESPN – nobody will shell out monthly for The History Channel or Lifetime streaming

  3. Member [Join Now]
    Captain Betty [captain-betty]

    This is dumb… why go through the rigmarole of spinning up your own service when you’re already partnered with the best in the biz? If it’s about money… just charge more for your content. It’s a symbiotic relationship. As Disney you don’t have all the overhead of infrastructure, billing, etc… and Netflix pays to stream your content. Netflix benefits because customer come to them to watch your content.

    The problem here is as others above said… too much fragmentation in streaming services. Unless you’re a parent of little toddlers, you “maybe” have a need to get a Disney streaming service for $x/mo but why do that when you get the best of all worlds with Netflix?

    Whatever, we’ll see how this plays out.