Disney Pulls out of Deal With Netflix

Are there two properties bigger in the entertainment world right now than Disney and Netflix? Probably not. Disney is the gigantic monopoly that looms large over the box office thanks to their ownership of both Marvel and the Star Wars ownership — as well as their own extensive backlog of original works. Netflix is probably the biggest reason why people are cutting their cable. A partnership between the two properties would make absolute sense, wouldn’t it? alas, it is not to be. Disney has already pulled out of their young deal with Netflix in order to pursue a potential streaming service of their own. This has all the makings of an industry shattering event.

Disney decided to pull out of Netflix after coming into an opportunistic purchase. Disney bought the company BAMTech LLC for an eye popping $1.58 billion dollars. BAMTech focuses on bringing content directly co consumers by way of digital streaming technology. With this deal in place Disney was able to opt out of their contract with Netflix. What does this mean? Anything related to Disney is going to be pulled from the shelves of your digital Netflix library. This includes all Star Wars, Marvel, and animated projects.

Disney will be moving on to create their own all in one streaming package for customers which is due to launch some time in early 2019. The digital platform will host all of Disney’s extensive library — excluding their Marvel and Star Wars properties. Why aren’t their, arguably, hottest titles going to be included in this flagship program? Disney is considering launching a second streaming service solely for the Star Wars and Marvel cinematic universes.

Disney CEO Bob Iger went on record with the concept of a Marvel/Star Wars independent streaming package. Iger said, “We’re mindful of the volume of product that would go into those services.” The decision to exclude such hot titles from Disney’s newest potential program is more than odd, it is actually a gamble. Iger and the rest of the Disney team will be taking the gamble that people are willing to pay for multiple new streaming services alongside their current Netflix subscription.

Still, if any company can make a new venture work in the streaming world then it likely will be Disney. Iger said, “This lays the groundwork for the company to do a number of things.” Is Disney planning to innovate within the streaming industry? It certainly seems so.