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Old 08-08-17, 04:01 PM   #1
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Disney to launch movies streaming service in 2019 & ESPN service in 2018

http://deadline.com/2017/08/disney-b...es-1202144961/


Netflix deal will end once the new service launches. Yup, yet another streaming service and now sports service to flood an already crowded market. But with the Disney brand name, it will definitely get subscribers.

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Look out Netflix: Disney says today that it will end its theatrical distribution deal with Netflix beginning in 2019 to feed its releases to a new Disney-branded streaming service launching that year.

The company also announced that its ESPN-branded streaming service will launch in early 2018.

Both will be powered by BAMTech’s technology: Disney agreed to pay $1.58 billion for the 42% stake owned by MLBAM, Major League Baseball’s interactive media and Internet company of Major League Baseball. Disney already owns 33% and is accelerating part of the agreement that enabled it to buy a majority.

The Disney-branded service will be “the exclusive home in the U.S. for subscription-video-on-demand viewing of the newest live action and animated movies from Disney and Pixar,” the company says.

Iger told analysts to think of this as a global service. There’s no decision yet on whether to include Marvel and Lucasfilms releases. The company is thinking about having separate services for them. “It’s all in discussion.”

The 2019 slate, to go on the new service, will include Toy Story 4, the sequel to Frozen, and The Lion King from Disney live-action.

The company adds that it also will “make a significant investment in an annual slate of original movies, TV shows, short-form content and other Disney-branded exclusives for the service.”

It will also include library content from its Disney and Pixar libraries as well as Disney Channel, Disney Junior and Disney XD television programming.

“This acquisition and the launch of our direct-to-consumer services mark an entirely new growth strategy for the Company, one that takes advantage of the incredible opportunity that changing technology provides us to leverage the strength of our great brands,” CEO Bob Iger says.

The announcement came as Disney announced its June quarter earnings. Company shares are down 2.7% in initial post-market trading. Netflix is down 3.4%.

Disney had previously said that it planned to launch an ESPN-branded digital subscription service, accessed via its app.

It says today that it will include “approximately 10,000 live regional, national, and international games and events a year, including Major League Baseball, National Hockey League, Major League Soccer, Grand Slam tennis, and college sports. Individual sport packages will also be available for purchase, including MLB.TV, NHL.TV and MLS Live.”

It will also have news, highlights, and scores.

Iger says that the service will be “even more robust than the one we had anticipated.” He has not briefed ESPN’s cable and satellite distributors on his online sports plans.

The online service, and purchase of BAMTech, “does give us optionality in the future” as people increasingly access video from the internet.

The BAMTech deal is subject to regulatory approval. When it closes, Iger will become chairman of its board with . MLBAM and NHL remaining as minority stakeholders

Disney says that the BAMTech transaction will be “modestly dilutive” to earnings for two years — with more dilution depending on how much it spends on the new services.

Disney made its announcements just as it released its earnings for the June quarter.

Net income at $2.37 billion was down 8.9% vs the period last year, on revenues of $14.24 billion, down 0.3%. Analysts expected the top line to hit $14.42 billion.

Adjusted earnings at $1.58 per share beat estimates for $1.55 — but included an income tax benefit from the adoption of new accounting rules for employee share-based awards.

Cable network revenues fell 3% to $4.09 billion; ESPN had five fewer NBA playoff games than it did last year and a more expensive contract. Operating income fell 23% to $1.46 billion due to ESPN’s “higher programming costs, lower advertising revenue and severance and contract termination costs.”
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Old 08-08-17, 04:10 PM   #2
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

I also have to wonder if this impacts Netflix's deal with the Disney Marvel shows. If Disney pulls all those shows and moves them to this streaming service at some point, that would be devastating to Netflix. Unless this service is solely for movies then that's another story. Hopefully not.

The shows are branded as Netflix originals, so I'm guessing they're not affected.
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Old 08-08-17, 04:13 PM   #3
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

I never could figure out why there are so many free NBA games with all the top notch teams when they should be under some pay service umbrella.

NBA League Pass should be the best most wanted streaming service but it gets very little ink.
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Old 08-08-17, 04:18 PM   #4
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

Paid online Streaming is getting ridiculous with all the various providers now.. All of this adds up..
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Old 08-08-17, 04:48 PM   #5
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

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Originally Posted by DJariya View Post
I also have to wonder if this impacts Netflix's deal with the Disney Marvel shows. If Disney pulls all those shows and moves them to this streaming service at some point, that would be devastating to Netflix. Unless this service is solely for movies then that's another story. Hopefully not.

The shows are branded as Netflix originals, so I'm guessing they're not affected.
I'm interested to know this also. Maybe all future seasons will be under the Disney umbrella.

Now, Netflix buying the rights for the Millar comic books makes even more sense.
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Old 08-08-17, 04:58 PM   #6
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

I would guess the Netflix shows would be safe but I haven't read the contracts. But the movies and animated series would still be a big loss.

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There’s no decision yet on whether to include Marvel and Lucasfilms releases. The company is thinking about having separate services for them. “It’s all in discussion.”
Separate Marvel and Star Wars services? It would make sense considering there'll be a DC service, but still.
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Old 08-08-17, 05:08 PM   #7
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

I thought Netflix paid Disney 300 million to stream their flicks? Granted, Disney's VOD service does not go into effect until 2019.
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Old 08-08-17, 05:13 PM   #8
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

Great. Content is just getting more and more fragmented. Streaming is just becoming more of a pain in the ass with higher costs and less content by each service.
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Old 08-08-17, 05:36 PM   #9
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

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Originally Posted by tripplej View Post
Paid online Streaming is getting ridiculous with all the various providers now.. All of this adds up..
No shit. I might as well go back to Cable

Already have:

Amazon Prime
Sling
Netflix
Hulu
HBO
Showtime
Cinemax
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Old 08-08-17, 07:04 PM   #10
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

Its getting to be a death by a thousand cuts now.

Just doing some rough math from candys list

Prime = 8.00 ish a month
Sling = 20.00
Netflix = 10.00
Hulu = 7.00
HBO = 10.00
Showtime = 9.00
Cinemax 10.00
Plus your monthly internet bill = ehhh lets go with mine at 65.00

139 bucks. Its getting stupid.
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Old 08-08-17, 07:41 PM   #11
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

Cable will soon be a cheaper overall option. I've never ditched it, and at this point, I doubt I will.
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Old 08-08-17, 08:45 PM   #12
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

Since Disney owns 30% of Hulu, why don't they just have it as a Hulu add-on? I just don't see how all these different streaming services will survive.
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Old 08-08-17, 08:46 PM   #13
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

what happens to the netflix/marvel shows?
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Old 08-08-17, 08:56 PM   #14
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

Netflix will continue carrying them until their contract runs out. Then they'll all be on the new Disney service.
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Old 08-09-17, 09:08 AM   #15
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

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Originally Posted by E Unit View Post
Cable will soon be a cheaper overall option. I've never ditched it, and at this point, I doubt I will.
Yeah, this is exactly why I've been skeptical of the whole 'cord-cutting' movement since it became a thing. I predicted years ago the market could continue to splinter and now we're seeing it all come to pass.
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Old 08-09-17, 09:16 AM   #16
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

It's just

PRIME
Netflix
Hulu

for me -- and it will stay that way.
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Old 08-09-17, 09:21 AM   #17
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

Even if cable becomes cheaper, where will the content be? On streaming services. Cable will become just the major networks and channels no one watches.

Out here, you can get all that for free with an antenna. Around 30 channels (4 major networks, the CW, home shopping channels, 3 PBS channels and some movie channels), most in HD.
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Old 08-09-17, 10:06 AM   #18
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

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Originally Posted by Rex Power Colt-Robot Man View Post
Its getting to be a death by a thousand cuts now.

Just doing some rough math from candys list

Prime = 8.00 ish a month
Sling = 45.00 (Blue/Yellow)
Netflix = 10.00
Hulu = 7.00
HBO = 15.00
Showtime = 9.00
Cinemax 10.00
Starz = 9.00
Plus your monthly internet bill = ehhh lets go with mine at 65.00
139 bucks. Its getting stupid.
My cable bill is about $90. Forgot I had Starz and I subscribe to Blue/Yellow Sling. HBO Now is $15 for me.

So about $203 per month. Streaming is big for me simply because I travel for work, especially on Sundays. So if I'm stuck at the airport I can catch Thrones or one of the Dead shows on AMC. I also share some of the accounts with family, so I guess that's a plus.

I may end up dropping Showtime (once S8 of Shameless airs), Cinemax and Starz, but overall it's still pretty damn high.
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Old 08-09-17, 10:10 AM   #19
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

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Originally Posted by Why So Blu? View Post
I thought Netflix paid Disney 300 million to stream their flicks? Granted, Disney's VOD service does not go into effect until 2019.
They did, $300m for first run for a few years sounds right.

I think they stated nothing is happening to the Marvel/Netflix TV shows, pretty sure they're on Netflix to stay.
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Old 08-09-17, 10:24 AM   #20
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

CNN article confirmed the Marvel shows will stay there until their contract expires in 2019. Sounds like the 2019 launch is very calculated.
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Old 08-09-17, 10:38 AM   #21
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

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CNN article confirmed the Marvel shows will stay there until their contract expires in 2019. Sounds like the 2019 launch is very calculated.
2019 is the end of Phase 3 for the MCU (via Avengers 4), so maybe it has something to do with that.
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Old 08-09-17, 11:10 AM   #22
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

We have Netflix, Hulu, Amazon Prime and buy some stuff on Itunes. I'm not buying another streaming service, not unless they all severely reduce their prices. What's the point of having these if the total bill is the same as the old cable bill?


I'll be finding another way to watch the new Star Trek series, CBS All Access is one of the most mind-numbingly dumb ideas they've ever had.
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Old 08-09-17, 11:26 AM   #23
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

I still have cable plus Netflix, Prime, mlb.tv, and HBO during GOT season. As TomOpus said, the problem with cable is that it doesn't have premium channels unless you pay extra, and even availability of basic shows is sporadic. Some have only recent episodes of current seasons, and some don't have past seasons, and I bet that streaming deals affect their availability on cable. Plus, one of the reasons I still have cable is live sports, and I still need mlb.tv to follow my out-of-market team.

My concern is that Netflix is currently the catch-all solution like cable used to be, but will get thinner and thinner as content gets pulled away to these various services. So we'll have to get the services or pay for a la carte shows on iTunes or whatever.
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Old 08-09-17, 12:07 PM   #24
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

If you're disciplined you could probably cycle through the different streaming services and binge watch stuff, then cancel and move on to the next one. If I were smarter, that's what I would do, considering I only have so much time to watch cable/sports/Blu-rays/Netflix/Crunchyroll/Amazon Prime.
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Old 08-09-17, 12:19 PM   #25
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Re: Disney to launch movies streaming service in 2019 & ESPN service in 2018

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Originally Posted by E Unit View Post
Cable will soon be a cheaper overall option. I've never ditched it, and at this point, I doubt I will.
Whenever anyone complained that cable should be a la carte, I shrugged and thought "be careful what you wish for." And now here we are.
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