Walt Disney Company confirmed that it will remove its Star Wars and Marvel films from Netflix alongside its Disney and Pixar films, and will put them on its upcoming streaming service. The wisdom of that thinking remains to be seen, with Disney putting all of its bets on the strength of its library to sell its own streaming competitor against the diverse offerings of Hulu, Amazon, and Netflix, among other emerging services.
"I have described a very rich, treasure trove of content for this app", Iger said at the Bank of America Merrill Lynch 2017 Media, Communications & Entertainment Conference in Los Angeles on Thursday. Disney CEO Robert Iger has announced that movies from both Marvel Studios and Lucasfilm will be available exclusively on Disney's streaming service. Shares of Disney were down $3.60, or 3.6%, the worst performer among the Dow's 30 components and slicing about 25 points from the price-weighted gauge. By the end of 2019, Iger said he expects to have new deals for about 50% of ESPN's subscribers.
Netflix and Disney originally inked the licensing pact for the USA pay-TV window in 2012, under which Netflix secured streaming rights to the Mouse House's films starting with 2016 releases.
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Last year, Disney said it was taking a 33 percent stake in BAMTech for $1 billion. It's possible Disney revisits those scripts (they're all written) and reworks, or they may start over from scratch.
Iger added today that the new Disney service will also be the home to four exclusive films, along with between four and five TV series. "With ESPN, Disney and ABC, we're well positioned". This is includes Daredevil, Jessica Jones, Luke Cage, Iron Fist, The Defenders and future Marvel-Netflix properties. Disney's movie studio will be creating films specifically for the app, he said.
Disney is just beginning work on the digital service, which will be offered directly to consumers over the internet, and has yet to announce how it will be priced.