Disney terminated cooperation with Netflix in 2019 to develop its own streaming service

Disney says it will no longer provide new content to Netflix after 2019. Instead, the company will launch its own streaming video service in 2019 to provide consumers with direct access to its movies and programs.

Media Entertainment giant Disney plans to end its partnership with Netflix and focus on its own online ESPN products. It announced today that it will boost its subscription and streaming empire.

Disney says it will no longer provide new content to Netflix after 2019. Instead, the company will launch its own streaming video service in 2019 to provide consumers with direct access to its movies and programs. To move forward with the project, Disney announced that it would buy a majority stake in BAMTech, a streaming video company, for more than $1.5 billion.

Today we announced a strategic change in the way we distribute our content. " "the media industry is increasingly defined by the direct relationship between content producers and consumers," Disney Chairman and CEO Robert Iger said in a statement.

while announcing the change in strategy, Disney also released quarterly results. In its most recent results, its revenue growth was flat and its net profit fell 9%.

Disney says the new ESPN streaming service will provide roughly the same content as what is now available on cable television. Industry insiders say the move is to follow the example of other cable network companies and is intended to attract the so-called "cable cutters" (suspension of cable services).

on the company's earnings call, Iger reiterated his message to ESPN, saying it is still a profitable entity.

Disney pointed out that cable network revenue fell 23% year-on-year, mainly because ESPN was in trouble. The company attributed the decline to higher production costs, lower advertising revenue, and severance and contract termination costs. ESPN has recently laid off a large number of employees, including some well-known anchors, as consumers tend to cancel cable services and switch to streaming services. ESPN was also hit by the decline in average ratings and the fact that he did not play seven out of five games in this year's NBA Finals.

Disney's film and television entertainment business also fell 16%, in part because it released fewer blockbusters this year than in the same period last year. In 2016, the company received a boost from a number of hit films, such as Captain America: heroic Civil War, fantastic Forest, Alice in Wonderland 2: adventures in the Mirror. In the past quarter, blockbusters such as Guardians of the Galaxy 2, Pirates of the Caribbean 5: death without evidence, and Racing Story 3: the Speed Challenge did not do well at the box office. However, the company pointed out that with the release of blockbusters such as Thor: the Gods Twilight and Star Wars 8: the Last Jedi, the film and television entertainment business should end strongly this year. At the same time, Disney's theme park tourism business recorded quarterly revenue of nearly $5 billion, up 12% from a year earlier. Revenue from international theme parks in Paris and Shanghai helped Disney achieve sales growth during the hot summer travel season.

speaking about the new streaming service, Iger said on the earnings call that the company will create exclusive TV shows and movies for its own-brand products.

Edit: xiongwei