Disney are arguably the biggest studio force in the business. Netflix is probably the biggest film and TV streaming service.
For a number of years they have been in a very good and lucrative partnership. But as with some marriages it’s time for them to split.
Disney feel they can venture into the streaming service for their products and are intending to set up a a Disney specific streaming service.
Disney and Netflix’s deal comes to an end in 2019 and from Disney’s perspective it would be a way of cutting out the middle man and providing a service specifically for their products.
These products would include all the live action and animated Disney films, the Pixar films, Star Wars and Marvel. From Netflix point of view this is a massive blow.
But Netflix CCO Ted Sarantos has told Reuters that they are:
“In active discussions.”
These discussions are to keep Star Wars and Marvel. New Pixar and Disney movies from 2019 will be added to the Disney specific streaming service.
However, Disney CEO Bob Iger hasn’t strictly said these talks are happening for Lucasfilm products and Marvel films. But he has hinted that these may stay with Netflix or go to another streaming service after 2019.
It would be a good idea for Disney to allow the two biggest properties it owns to stay with Netflix as it is the biggest streaming service. If the New Disney service flops or doesn’t take off at least they could negotiate a new deal with Netflix and most likely charge a higher price.
It would be odd for Disney not to take their biggest franchises, but it could work out in their favour if they allow their streaming service to grow before they fully cut Netflix out.
Source: Reuters