Disney announced in their latest earnings report that they intend to pull all its movies from Netflix.
Instead, Disney plans to launch a branded direct-to-consumer streaming service in 2019 starting in the U.S. and expanding globally.
CEO Bob Iger told CNBC that they have had a good relationship with Netflix, but decided to exercise an option to move their content off the platform.
Movies to be removed include Disney as well as Pixar’s titles. Netflix said Disney movies will be available through the end of 2018 on its platform. Marvel TV shows will remain.
The new platform will be the home for all Disney movies going forward, starting with the 2019 theatrical slate which includes “Toy Story 4,” “Frozen 2,” and the upcoming live-action “The Lion King.”
The company will also launch its own ESPN video streaming service in early 2018. The platform, which will feature about 10,000 sporting events each year, will have content from the MLB, NHL, MLS, collegiate sports and tennis’ Grand Slam events.
To power the services, Disney is buying a majority ownership of BAM Tech for $1.58 billion. Disney bought a 33 percent stake in the company, which was spun off from digital media company MLB Advanced Media, in August 2016.
Netflix stock dropped more than 5 percent upon announcement of the news.