Disney announced plans to launch its own direct-to-consumer streaming service and stop distributing its titles on Netflix. The consumer offer will launch in 2019 and an OTT sports service based on its channel ESPN will start in 2018.
Disney has acquired control of BAMtech, a streaming specialist originally started by the US baseball league, to support its sports venture. Disney will pay USD 1.58 billion to acquire an additional 42 percent in BAMTech from MLBAM, the interactive media company of Major League Baseball. A year ago Disney bought 33 percent of BAMTech under an agreement that included an option to acquire a majority stake.
The ESPN-branded service will offer coverage of around 10,000 live games a year, including Major League Baseball, National Hockey League, Major League Soccer, Grand Slam tennis and college sports. Subscribers will also be able to add on individual sport packages. The service will be delivered over an enhanced version of the current ESPN app and also be distributed through pay-TV providers.
The Disney-branded service planned for 2019 will become the exclusive home in the US for subscription-video-on-demand viewing of live action and animated movies from Disney and Pixar. This will include films releasing in 2019 such as Toy Story 4, the sequel to Frozen and a new, live version of The Lion King.
Disney said it will also make a "significant investment" in an annual slate of original movies, TV shows, short-form content and other Disney-branded exclusives for the service and make available Disney and Pixar library content. In addition to apps, the Disney service will be distributed through pay-TV providers.
With the decision to develop its own OTT services, Disney said it will end its distribution agreement with Netflix for subscription streaming of new releases, beginning with films released in 2019.
