Disney Shocks The World By Announcing They Are Ending Their Partnership With Netflix
When Disney decided to sign a contract with Netflix to exclusively stream their content just under a mere year ago to say that people were excited would be an understatement. The Disney Universe is beloved by billions worldwide and having first-hand, exclusive access to each new release was an excitement for Netflix users worthy of mouth-foaming (from excitement, of course!) Now in what can only be described as a stunning change of plans, Disney announced on Tuesday that they plan to pull their movies and not renew their agreement in 2019 with Netflix. Instead, Disney has announced they intend to launch their own exclusive streaming service and people are talking.
Disney CEO Bob Igervia:Kimberly White - Getty Images
Disney made the shocking announcement during its earnings report Tuesday morning, along with announcing an intention to issue an ESPN streaming service as well. There is no shortage of what and why questions being thrown around, which is to be expected.
Disney CEO Bob Iger is leaving much to be desired for Disney fans when he said that if a movie is Pixar- or Disney-branded, it will probably appear exclusively on the new service and that would include shows and movies made specifically for the service, but the jury is still out on Marvel and Star Wars films. Some fans are left thinking if they're going to be coughing up money for yet another streaming service that they should get the whole package. Let's face it, most families are already using at minimum one streaming service and it's not hard to fathom that most are using more than one. Twitter has been ripe with statements.
Nobody wants any more goddamn streaming. 30 streaming services is just cable TV where you pay for every channelhttps://t.co/zLpUcWBrlu— Ian Fortey (@IanFortey) August 8, 2017
Is this an ominous sign for Disney? We don't necessarily think so because Disney has released some details that suggest some big plans for their service...
On a press release posted on the official Walt Disney website, Disney suggested that this streaming service will not just feature the movies we've been seeing on Netflix, but that it will be a platform for original content, both movies and TV shows, as well:
The new Disney-branded service will become the exclusive home in the U.S. for subscription-video-on-demand viewing of the newest live action and animated movies from Disney and Pixar, beginning with the 2019 theatrical slate, which includes Toy Story 4, the sequel to Frozen, and The Lion King from Disney live-action, along with other highly anticipated movies. Disney 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. Additionally, the service will feature a vast collection of library content, including Disney and Pixar movies and Disney Channel, Disney Junior and Disney XD television programming.
That has left some optimism for plenty of people, believing that this move on Disney's part will be huge for them.
Okay, cool. That still leaves the question of the Marvel and Star Wars universe and some reports and statements from Bob Iger suggest that those movies may actually stay on Netflix!
"We will say is that Disney Pixar will definitely part of this and not be part of any other pay window distributor in the United States"— Matthew Zeitlin (@MattZeitlin) August 8, 2017
This has left us feeling mixed emotions. Are we excited? Are we upset? We're a little unsure.via:Twitter
Yet amidst all the confusion Disney also released a whole lot of details on their earnings and losses on Tuesday as well and that brings in a whole new perspective.
The Netflix-Disney announcement came alongside some relevant earnings and losses numbers worth repeating. In after-hours trading, shares were falling 3%.Their reported quarterly revenue of $14.2 billion was about $180 million less than what Wall Street expected but their profit came in at $1.58 per share, three cents more than projected.It was Disney's biggest segment of media networks that saw a significant revenue drop of 1% year-over-year to $5.9 billion and an operating income plunge of 2% to $1.8 billion, though ESPN takes most of the blame for that one. However, Disney said that ESPN's problems were a result of"higher programming costs, lower ad revenue and costs associated with severance packages for departing employees." To be fair,though, their broadcasting networks didn't see much better in the ways of performance versus their cable networks due, again, to higher programming costs and lower ad revenue.via:Earn Hustle 411
So, how is Disney going to pull of the big switch? Simple enough!
Disney currently owns a stake in BAMTech but they plan to pay $1.58 billion for the additional 42% required to acquire the majority. BAMTech is a streaming technology company currently owned by MLBAM, which is an internet company owned by Major League Baseball. With the technology behind them, the transition should be pretty smooth. It's just a matter of getting everyone on board and ironing out all the details!
So, what is on your mind? Are you with the excited side of the Internet and looking forward to yet another way to enjoy all things Disney? Or are you feeling some negativity about coughing up more money for another streaming service when you were perfectly content with Netflix? Let us know!via:Buzzfed
This isn't the first time that people have expressed their dismay with Disney. Take a look at this backlash for the new Aladdin movie.