Shares of Netflix fell more than five percent on Tuesday after Disney announced that it is planning to pull all of its movies from Netflix.
The announcement was made during the company’s earning release and revealed that Disney has plans to launch its own streaming service that will be branded and direct-to-consumer in 2019. It will first start in the U.S. and then expand around the world.
The movies that will be removed from Netflix include all of the Pixar titles as well as Disney films. For all Disney moves going forward, the platform will be ready for “Toy Story 4” and “Frozen 2” as well as the live action release of “The Lion King.”
Disney also announced that it would be making a “significant investment” in exclusive movies and television series for the new platform.
Next year Disney plans to launch a video streaming service for ESPN too, that will have around 10,000 sporting events every year.
“This represents a big strategic shift for the company,” CEO Bob Iger said to CNBC. “We felt that having control of a platform we’ve been very impressed with after buying 33 percent of it a year ago would give us control of our destiny.”
Disclaimer: We have no position in Netflix, Inc. (NASDAQ: NFLX) nor Walt Disney Co. (NYSE: DIS) and have not been compensated for this article.