Just to keep Bert happy, I found a CNN version of this announcement.
Looks like a win-win situation.
I am correct that the congloms will be pulling their content from Netflix.
Bert is correct that Disney will offer a stand alone ESPN streaming service. It
sounds like the streaming service may be different from the MVPD service as
well, with more focus on the International audience. It wil be interesting to
see how this service is priced.
It looks like the congloms are learning that they can sell their bundles of
content to facilities based MVPDs, Virtual MVPDs, and direct to consumers. It
will take years for this transition to take place - the Disney/Netflix deals
end in 2019.
I'm still betting that the (V)MVPDs will hold onto most of the business, as it
will be far less expensive than buying the individual bundles from each
conglom separately.
Regards
Craig
http://money.cnn.com/2017/08/08/media/disney-netflix/index.html
Disney to pull content from Netflix
Disney is parting ways with Netflix.
The company said Tuesday that it will end its partnership with the streaming
service in 2019.
Disney also announced it will launch its own streaming services, and plans to
acquire a majority stake in BAMTech, a major streaming and marketing service.
Disney's cable networks, such as ESPN, make up the majority of the company's
earnings. However, that proportion has fallen in recent years as viewers change
the way they consume entertainment. The new streaming services are a way to
connect directly with consumers and take advantage of new viewing habits.
To that end, Disney is paying $1.58 billion for majority ownership of BAMTech.
Last August, Disney acquired a 33% stake in that company, which is a spinoff
from Major League Baseball Advanced Media, for $1 billion.
Disney said it will launch an ESPN-branded streaming service in 2018, and a
separate Disney-branded streaming service in 2019.
The Disney service will be the only place where U.S. viewers can watch new live
action and animated movies from Disney and Pixar, including "Toy Story 4," the
"Frozen" sequel and "The Lion King" live-action movie. It will also feature
content from the Disney Channel, Disney Junior and Disney XD.
The ESPN-branded sports service will offer about 10,000 events a year,
including live programming with regional, national and international games.
Disney's plans for its own streaming services come as ESPN has struggled with a
drop in subscribers and ad revenue as well as a round of high-profile layoffs
and departures at ESPN earlier this year and in 2016.
According to a spokesperson, Marvel TV series like "Luke Cage," "Jessica Jones"
and "The Punisher" will continue to live on Netflix -- for now. Animated series
like "The Clone Wars" will move to the Disney app. Existing movies from Disney
and Pixar will remain on Netflix until their current deals expire.
Shares of both Netflix (NFLX, Tech30) and Disney (DIS) were down 4% in
premarket trading Wednesday on the news.
CNNMoney (New York) First published August 8, 2017: 4:24 PM ET
