Disney Cutting off Netflix to Launch Streaming Service in 2019
Disney currently has an exclusive agreement with Netflix to stream its content, a deal that was made in 2012 but didn’t take full effect until last year. Now Disney is withdrawing. In 2019, its content will disappear from Netflix when Disney’s own streaming service joins another planned streaming service from Disney subsidiary ESPN. The announcement raises a few questions: How many of these streaming services are people willing to pay for? Will Netflix’s original TV shows and movies be sufficient to make up for the content it’s losing from competitors with ties to the major studios and networks?
Cable might end up being less expensive than streaming unless the networks pull out of cable too.
My hot take is that a lot of the companies that think their own service will do well are in for a rude awakening. People have issue with subscribing to Netflix plus Hulu, which is an enormous catalog of content. People aren't going to rush out to get only one studio's catalog, with Disney maybe being the exception. But even then I don't think the fact that they're suggesting separate services for Marvel and Star Wars bodes good things for their future.