Disney Ending Deal With Netflix for Future Movies, Moving to Disney's New Streaming Service


#1

The new Disney-branded service will become 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, beginning with the 2019 theatrical slate, which includes Toy Story 4, the sequel to Frozen, and The Lion King from Disney live-action, along with other highly anticipated movies. Disney will also make a significant investment in an annual slate of original movies, TV shows, short-form content and other Disney-branded exclusives for the service. Additionally, the service will feature a vast collection of library content, including Disney and Pixar movies and Disney Channel, Disney Junior and Disney XD television programming.

With this strategic shift, Disney will end its distribution agreement with Netflix for subscription streaming of new releases, beginning with the 2019 calendar year theatrical slate.

Note that this means Netflix won’t be receiving any future Disney movies, and current ones will be pulled off eventually. However there is no plan right now for what will happen with Marvel movies or Star Wars movies.

Edit: Star Wars and Marvel movies are coming to Disney’s service.

Marvel TV’s deal will not be affected:

A Netflix rep says Disney’s decision doesn’t affect other deals that it has with Netflix, including one that brought a series of Marvel superhero originals like “Daredevil” to Netflix.


#2

This makes me honestly wonder if the streaming service economy is a bubble that might well be reaching the point where everyone goes all-in on their version before the ultimate collapse. While Disney probably can earn itself a slate of sufficient quality to pass muster (if only by its movie back catalogue or prodigious associated IPs), I feel like Netflix works because it’s a small amount of money for a wide catalogue. If the market fractures into fifty different services, suddenly £10 per month per service adds up quickly and subscription numbers fall through the floor.

Maybe we’ll get companies that will bundle them up in package deals. I’m sure that’ll go well.


#3

It is a bubble, and it will pop, like you think.

Netflix was the first to do it, and has the most success because of it. Unlike Amazon, Netflix isn’t sending me physical mail telling me they have a video streaming service. Hulu’s doing alright just because it’s got a hand in current TV offerings, and HBO has the monopolized advantage of making their streaming service their only option (or you get to pay for cable, which is what we’re trying to avoid to begin with.

I’m on Netflix, and Crunchyroll, and even Crunchyroll is getting shaken down by Anime Strike and Netflix with their awful anime policies (Anime Strike costs more outside of Amazon Prime, Netflix doesn’t release a season until it’s done airing in its entirety in Japan). It’s super annoying and I end up sailing the high seas to get access to the other stuff because of their garbage policies.

I’m not very excited for where streaming is going. DC is apparently making its own service for Young Justice. I can tell you that I won’t be paying for that.

As an aside @robowitch, one company did try to sell streaming services as a package deal, though I don’t remember the name of the company. It got shut down immediately.


#4

Oh yes, we’re definitely heading towards a world of neo cable package deals. It’s how the smaller services like VRV and Seeso will survive. Netflix, Amazon, and Hulu will be the NBC, CBS, and ABC of this new world.


#5

Can’t say I’m surprised, but I am disappointed. Netflix is so great because it has such a wide catalog. Disney has good movies, but other than that I’m not interested. I used to subscribe to HBO, but I was only watch Game of Thrones and it just wasn’t worth the sub cost. Amazon only works because it is a perk of Prime, it’s catalog it pretty bad overall and too small.

I’m sure Disney’s service can work, they have all of ABC as well, but if they try to fracture their own product base, I don’t see that going well. Other media companies are going to be watch how Disney works out and if they start raking in the cash, others will follow. At least Netflix has been boosting it’s catalog with lots of good quality originals.


#6

I still haven’t even looked at that streaming service that has all the Criterion films. There’s too many of these.


#7

I subscribe to Shudder, which streams primarily horror. Being as niche as it is, it’s a double-edged sword: I can watch obscure horror movies that I might never see otherwise, but with the knowledge that it will probably be the first to go when this bubble bursts.


#8

This bubble includes Spotify and music streaming, along with YouTube and a lot of other free or cheap services that we take for granted. Why can’t we just have nice things?


#9

Yup, the future for this doesn’t seem too bright. Every company can’t have a subscription service, that should be obvious. It wouldn’t surprise me if they make it difficult for people to jump in and out, perhaps making it more expensive to just do one month than to get a running subscription or something like that.

Netflix in my country has been shit for a while. They raised prices a year or two back but the catalogue is still pretty small and filled with a lot of low quality shows and films. They can pretend all they want, but their own stuff is not worth subscribing for alone.

HBO’s service here is terrible. (Last I tried it) their app doesn’t stream in HD, and you can’t even pause. Also a lot of stutter and stuff. But it’s HBO so they can still charge a bunch because their catalogue is actually good, and people don’t care about “technical” stuff like pausing a video.

Maybe the future will be more digital renting somehow. It’s a thing now, but it’s obviously the less popular form of service. Perhaps there aren’t services that are good enough.


#10

Now, however, it looks like the Netflix Disney film loss set for 2019 won’t impact Disney movies and television shows in international markets, including Canada, according to sources with knowledge of the deal. Disney content present on Netflix in Canada and international markets is held under separate deals.

If the 2019 termination of its content agreement with Netflix won’t result in a shift in what content is present the streaming service in international markets, including Canada, it’s likely Disney’s new platform will not launch in Canada. Another possibility is that Disney content will be distributed across both Netflix and the animation company’s proprietary streaming platform, though this option is unlikely.

Also, a correction: Disney movies WILL be pulled off eventually, and won’t be kept on Netflix (in the U.S.). There’s no definite answer right now to what will happen with Marvel movies or Star Wars movies.

Update: Had to check on this, because I was typing while CEO Bob Iger was talking. But here’s an important bit of non-specificity: All of Disney’s movies will eventually come off Netflix, but that doesn’t necessarily mean they’ll end up on the Disney streaming service. Iger says the service will definitely have Disney and Pixar films, but he’s not sure it will carry Disney’s Marvel and Star Wars movies. Those could end up somewhere else — maybe something owned by Disney, maybe not.

Here’s the relevant transcript excerpt:

What we’re saying specifically is that the Disney branded [service will] have the Disney and Pixar films. The disposition of the Marvel and Lucas or Star Wars films we have not determined yet. We’ve had a discussion internally about how best to bring them to the consumer. It’s possible we’ll continue to license them to a pay service like Netflix, but it’s premature to say exactly what we will do.

This later leads into his statement about different services that I quoted already.

On Marvel TV:

A Netflix rep says Disney’s decision doesn’t affect other deals that it has with Netflix, including one that brought a series of Marvel superhero originals like “Daredevil” to Netflix.


#11

The fracturing of the streaming ecosystem will ultimately just lead to more piracy. It’s as simple as that. People don’t want to spent 100 dollars a month on cable packages for the one or two programs they want to watch anymore. People will refuse to pay for four or five streaming services at the same time too. The more expensive and complicated things get, the more consumers will turn to the high seas for their entertainment.


#12

The unevenness of international deals is another issue for streaming platforms historically and one that I don’t think makes this any easier.

The only benefit I can think of from these moves is that I hope it spurs the creation of clear, regional, and good database services that can just tell you where something is available. As someone who doesn’t really watch much TV, it’s a little frustrating that there doesn’t seem to be a good service where I can say “okay, I want to watch 2001: A Space Odyssey this evening. What services offer this to stream or rent?” (if someone has a good one, I’m all ears!). Having sixteen different streaming services with differently-overlapping offerings depending on the region will surely open a gap in the market for that kind of database, right…?


#13

I would recommend JustWatch for that type of service. It searches through less known services like Shudder and FilmStruck along with Netflix and Hulu.

Edit: There’s also filtering options available. You can filter by rating, price, service, and some other filters there.


#14

I wonder if Disney’s new streaming service is going to be available in Canada, and if not I wonder if we will get to keep their movies on our Netflix. I really don’t want to add a second subscription, especially since I’m not the one paying for my Netflix.


#15

Bob Iger announced today that Star Wars and Marvel movies will come to Disney’s service.

Also mentioned: the service will launch late 2019 and there will be 5 original movies planned for it, plus an equal amount of original TV shows.