The company also said it would pay $1.58 billion to buy an additional 42 percent stake in video-streaming firm BAMTech to power its new service. We first heard about this service previous year, when Disney acquired a minority stake in BAMTech, the MLB-founded video juggernaut behind numerous most popular sports and TV streaming services. The statement said, "US Netflix members will have access to Disney films on the service through the end of 2019, including all new films that are shown theatrically through the end of 2018". The Company operates in four business segments: Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media.
Disney shares were down a little more than 2 percent, while Netflix fell more than 3 percent in after-hours trading.
Also today, Walt Disney announced that it will end its streaming deal with the content it releases in 2019.
The new Disney branded direct-to-consumer streaming service will launch in 2019. Or it's possible those licenses will expire and will depart sometime before or shortly after Disney's new streaming service launches.
The announcement came during Disney's quarterly earnings report and was detailed in a news release from the media giant. Launching an all-Disney streaming service that offers your children a variety of Disney films and TV will no doubt be popular, and it'll be interesting to see how competitive they'll get with pricing. The company previously held a 33 percent stake in the company under an agreement that included an option to acquire a majority stake over several years.
The ESPN-branded multi-sport service will offer a robust array of sports programming, featuring approximately 10,000 live regional, national, and worldwide games and events a year, including Major League Baseball, National Hockey League, Major League Soccer, Grand Slam tennis, and college sports.
The current plan is for Disney and ESPN streaming services to be available for purchase directly from Disney and ESPN, in app stores, and from authorized pay-TV partners.