Economy

Disney Taking Majority Control of BAMTech, Plans New Streaming Services

Disney Taking Majority Control of BAMTech, Plans New Streaming Services”

A broader Disney-branded offering should launch in 2019, just as its distribution deal with Netflix (NASDAQ: NFLX) expires.

Shares of Walt Disney Co (DIS) are down about 5.5% to $101 in Wednesday's early morning trading session, after the company beat on earnings per share and missed on revenue expectations, as sales slipped 0.3% year over year.

The new Disney-branded service will become the exclusive home in the USA 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 CEO Bob Iger tells CNBC that the company had a "good relationship" with Netflix, but chose to move its content - including Star Wars titles and popular Pixar films, off of the platform.

Disney, which also owns the ABC television network, said its consumer channel would include its Disney and Pixar movies and content from the Disney Channel, Disney Junior and Disney XD.

Disney chief executive Bob Iger says the launch marks "an entirely new strategy" for the company, which "takes advantage of the incredible opportunity that changing technology provides us to leverage the strength of our great brands".

Disney's bombshell Tuesday announcement to yank its movies from Netflix in 2019 is a shot across the bow, and Hollywood is paying close attention to the giant subscription company's counter attack.

Millar Comics includes the likes of Kick-Ass and Kingsman: Secret Service, which have all been made into major motion pictures.

However, it's not yet clear how Disney's other major franchises - including Marvel films and the Star Wars franchise - will be impacted, and whether it will launch internationally.

A Netflix rep said the news doesn't affect the deal it has with Disney for the Marvel TV shows such as Luke Cage, Daredevil, and The Defenders.

With this shift, Disney will end its distribution agreement with Netflix for subscription streaming of new releases, starting with the 2019 calendar year theatrical slate. But it's worth noting these 2016 releases are among their freshest offerings, which gives the impression that after the theaters, viewers might be able to depend on seeing the films pop up on Netflix.

In order for the company to make these services happen, The Verge claimed that Disney will take a majority ownership of BAMTech for an amount of $1.58 billion. They were responsible for most of the newer Netflix titles at the time, and it was like having the rug pulled out from underneath your feet. Another possibility is that Disney content will be distributed across both Netflix and the animation company's proprietary streaming platform, though this option is unlikely.

There aren't a lot of details pertaining to the Disney streaming service at the moment.



Like this

Latest


11 August 2017
Kamal Haasan, Rajinikanth attend DMK function
But Dravidam (Dravidian culture) would continue to exist till the word Dravida exists in the National Anthem". The function was also attended by the editors and journalists of various dailies, magazines and cine stars.

11 August 2017
Lumentum Holdings Inc. (LITE) - Lookout Watch List stock
DnB Asset Management AS purchased a new stake in Lumentum Holdings during the first quarter valued at about $1,446,000. UBS AG raised their price objective on shares of Lumentum Holdings from $66.00 to $70.00 in a report on Wednesday.

11 August 2017
Federer tops Ferrer in 3 sets
Bautista Agut advanced to a quarter-final against the victor of a match later Thursday between second-seeded Roger Federer and David Ferrer.

11 August 2017
Seoul shares open lower amid escalating tensions over North Korea
US President Donald Trump told reporters at his golf club in Bedminster, New Jersey, on Thursday that he will respond forcefully to any North Korean attack on the US or its allies.

11 August 2017
Westworld: Season 2 Expands With Vikings' Floki and More
Westworld has also added Kingdom's Jonathan Tucker , who is set to recur as Major Craddock, a "commanding military officer". The series is inspired by the motion picture Westworld , written and directed by Michael Crichton.

11 August 2017
Latest Fitbit smartwatch leak shows off design and new heart-rate tech
Furthermore, the button configuration seems to be similar to the Fitbit Blaze with two on the right and one on the left. Images of the upcoming Fitbit smartwatch recently leaked, showing off the gadget in all its glory.

11 August 2017
$1 billion grant approved for Mugabe University in Zimbabwe
The latter group is also thought to have the backing of president Mugabe who will seek another five-year term in office next year. According to state media, Mr Mugabe has seven earned degrees and 11 honorary degrees.

11 August 2017
Surrogacy bill: House panel trashed the proposed legislation
The committee noted that permitting women to provide reproductive labour but not paying them for the same was unfair and biased. The ART Bill was drafted in 2008, and underwent frequent reviews and re-drafting first in 2010 and later in 2014.

11 August 2017
Facebook takes on YouTube and TV with revamped Watch hub
As a mark of evolution, Watch now makes it even easier to catch up with shows you do not want to miss - be it live or recorded. Business Insider reports that Watch is scheduled to roll out August 28 but only to a small number of people at first.

11 August 2017
Constellium NV (CSTM) Posts Quarterly Earnings Results, Misses Expectations By $0.08 EPS
Prescott Group Capital Management L.L.C. purchased a new position in Constellium N.V. during the first quarter valued at $965,000. Finally, Parametric Portfolio Associates LLC raised its position in shares of Constellium N.V.by 4.7% in the first quarter.



Recommended