Disney to Pull Content from Netflix and Launch Streaming Service in 2019

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It was less than a year ago that Netflix became the exclusive streaming home of Disney’s movie releases including their wildly successful Marvel, Lucasfilm and Pixar properties. The deal was a pretty valuable one for Netflix (they reportedly paid $300 million for it) and it continued their partnership with Disney after launching a handful of original Marvel TV series together. Unfortunately for Netflix, Disney is already pulling the plug on the deal as they prepare to enter the market with their own streaming service. While the cut off will not take effect for a couple of years, this is a major blow to Netflix and potentially a sign of the future struggles ahead for the streaming giant. Hit the jump for more details.

This week Disney has announced that they plan to end their distribution deal with Netflix and launch their own streaming service in 2019. Netflix will retain all of the Disney movies released through to the end of 2018, but 2019 movies like Toy Story 4 and Frozen 2 will only be available via Disney’s new platform (although Disney has hinted that they may still license out Star Wars and Marvel movies). Netflix and Disney will continue to collaborate on their Marvel TV shows and possibly other future projects as well.

This makes perfect sense for Disney, a company with enough premium content to justify a monthly subscription fee. Other studios have been looking to launch their own streaming platforms as well, which means the days of getting all of your streaming content from a single service are all but over. Netflix has been focusing heavily on original content for a while now and it seems like a wise move. This also explains their recent acquisition of Millarworld as they look to lock down even more original properties for themselves. Are you disappointed by this news? Do you think Netflix will survive on original content alone?

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  • 1138sw

    Wow this isolation of content is bad for the viewer. I mean how many services do you want to pay for in the end?

    However that being said, competition could be a good thing, for it could lead to tremendous diversity in content with everyone scrambling to create new material or buy new material to attract customers.

  • Lisa V Benson

    Probably will be successful with families needing to have the Disney fix for the kids!

  • David

    That’s a false question. Netflix doesn’t need to survive on original content only. Their original content is a relatively new offering in their lineup. There’s a lot of other content out there not owned by Disney, and the decision makers in a household are the adults, not the children.

    Somehow HBO has survived all this time without exclusive rights to stream Cars 2 :)

    If Disney was rushing to pull their adult content ( Marvel / Star Wars / etc ) I would think Netflix would have a much bigger reason to worry.

  • Sean

    They may still lose the Marvel and Star Wars stuff, that’s currently up in the air.

    I don’t think it’s a false question. In a future where there are 20 different streaming services, will Netflix survive? I think they will, but they may not be top dog anymore.

  • David

    That question makes a lot more sense than “Do you think Netflix will survive on original content alone”.

    I think they will survive. Both Netflix and Amazon have been moving successfully to control their own original quality long form content.

    I don’t think this is a particularly new situation. HBO and Showtime have been premium services with proprietary content for years, and have been very successful. HBO’s still ahead of the other streaming services with AAA productions like “Game of Thrones”, but gap is being slowly closed.

    As competition proliferates, I think the shake-out will be in the services that don’t have the unique selling proposition of unique content that gets people talking around the water cooler, like OITNB, GoT, Stranger Things, Ozarks, Transparent, etc.

  • Nick P.

    I disagree. no one is going to pay for 20 different streaming services. I have Netflix and HBOnow, thats it. Everything else I pirate. I am a HUGE star trek fan, but there is no way in hell I am paying for that CBS streaming nonsense. Now, I will conceed that if any company could force their way into the streaming market it is Disney, BUT I think this brave new world where everyone pay for 20-30 different streaming channels is pretend land.

  • Sean

    I don’t think everyone will pay for 20 or 30 but I think there will be 20 or 30 options to choose from. Netflix just has to worry about remaining one of the top choices in the pack.

    There is probably already 20 different ones out there right now. Netflix, Hulu, Amazon, Crackle, HBO, Filmstruck, Shudder, iTunes, YouTube Red, Warner Archive, Boomerange, CBS All Access, Starz, Showtime…?

  • I have Netflix (through my parent’s account), Amazon and HBOGo. I’m a pretty avid movie-watched (i.e. I’ve seen a LOT of stuff) and even still, there are a ton of movies on these services that I’ve not seen and want to.

    People (not you, Sean) who say that there is nothing good on Netflix piss me the fuck off. Besides their original content, there are SOOOOOO many good movies on there to choose from it’s ridiculous – and the exact same thing goes for HBO and Amazon.

    I can’t attest to the other services Sean mentions below (Starz, Hulu, etc.), but I won’t pay for a Disney service because I already have three and if anything, already have TOO much of a choice of content.

  • Also I don’t have kids. I get that Disney has adult stuff too (Star Wars, Marvel, blah blah) but their library isn’t big enough to get me to shell out extra money just to stream Cinderella and The Black Cauldron.

  • Matt the Kiwi

    Streaming content is dead – physical media is the future. Movies on vinyl for hipsters…it’s coming.