Disney Splits From Netflix

Netflix is currently the undisputed king of entertainment, with its subscriber count in the hundreds of millions. In fact, the streaming service just added more than 100 million international subscribers to its ranks. Netflix owns digital entertainment. So it was a surprise when Disney announced that the company will no longer be partnering with Netflix in 2019. Instead, Disney will start its own streaming service to go head to head with Netflix. How does that affect both companies? Is Disney signing its own death warrant?

DISNEY STRIKES NETFLIX; FINDS A CHINK IN THE ARMOR

With its own streaming service, Disney is betting that its fan base will choose the movie studio’s service over Netflix. Both Disney and Netflix are major players in the entertainment space. And their partnership has thrilled hundreds of millions of viewers around the world. We’re not just talking about kids watching Moana on repeat, either. Disney owns Marvel. Which means that Disney has a major say in some of Netflix’s biggest and most popular productions, such as Daredevil, Jessica Jones, Luke Cage, Iron Fist (okay maybe that one is a stretch) and The Defenders.

So what happens to these franchises when Disney walks away? No one knows. Yet. But given the popularity of the shows, Disney may have just done itself a huge favor financially, since Netflix will now have to license the rights to the shows, and Disney may be able to feature the shows on its own streaming service, which would be huge.

Check out what John Campea has to say about it on The Movie Vlog

Disney has a massive following, as anyone with a 9 year old or younger child will tell you. And those parents listen to their kids. If the only place the kids can get their Disney fix is on Disney’s streaming service, people will pay up for it. The new streaming service will also be the only place viewers can find special Disney content, like Toy Story 4, the Frozen sequel, and a live action Lion King movie, as well as content from the Disney Channel, Disney Junior, and Disney XD.

Disney is leaving Netflix to a launch a new streaming service https://t.co/gVedPlCf2a

— TIME (@TIME) August 8, 2017

ESPN, which is also owned by Disney, will see its own streaming service, with up to 10,000 events airing throughout the year, including local and international sports. While Disney films are as popular as ever, its once-crown jewel ESPN has been struggling and losing money. Disney seems to think a standalone service is the answer.

Will the mouse succeed? Investors seem to think so, as shares ticked up on the news. As long as Bob Iger remains CEO, Disney is a solid bet for shares to continue up.