The Walt Disney Company reported its quarterly earnings this week, which included a surprise outside of finances: the entertainment titan plans to remove most of its content from Netflix.
Disney says it intends to pull movies from Netflix by the end of next year, with plans to launch its own direct-to-consumer streaming service in 2019.
CEO Bob Iger says he has no qualms with Netflix but believes the company can better leverage its content library through an in-house platform.
Disney and Pixar content will be moved from Netflix to Disney’s service. Marvel television shows are to remain on Netflix.
The company also plans to launch an ESPN streaming service next year, offering thousands of sporting events per year across several sports, including baseball, hockey, and tennis.
Disney this week acquired a majority ownership stake of BAM Tech for $1.58 billion to help power what Iger described as “a big strategic shift for the company.”
Disney’s shares were down 3% and Netflix’s were down 5% at the close of trading on Tuesday.