Disney is planning to launch a branded subscription streaming video service in 2019, the same year its exclusive landmark pay-TV window distribution deal with Netflix for original movies expires.<\/p>\n
The pending change is noteworthy considering Disney has owned the box office in recent years with its successful slate of Marvel superhero movies, Pixar Animation titles and Star Wars.<\/p>\n
At the May 14 MoffettNathanson Media & Communications Summit in New York, Netflix CCO Ted Sarandos was asked about the impact of Disney going direct-to-consumer and pending loss of its original movies.<\/p>\n
\u201cPeople always ask me, \u2018where you surprised Disney is going to go direct?\u2019 I don’t know what took them so long, exactly,\u201d said Sarandos.<\/p>\n
The executive said that with Netflix releasing 1,000 original programs this year, including scripted series and movies, the pending loss of Disney movies would be measured.<\/p>\n
Interestingly, catalog Disney movies made from 2016-18 (and older) will remain on Netflix after 2019 \u2013 as well as Disney\u2019s OTT service.<\/p>\n
\u201c[Our subs] watch [Disney movies], but it wasn\u2019t particularly passionate watching and those films are widely available on a bunch of other channels,\u201d Sarandos said.<\/p>\n
The executive contends Netflix will continue to differentiate programming in an effort to better compete against Disney, Amazon Prime Video, Hulu and foreign OTT video competitors.<\/p>\n
Sarandos wonders how Disney will accommodate switching from content licensing (Netflix shelled out more than $300 million annually to Disney) to content cost when it goes consumer-direct.<\/p>\n
\u201cTurning that revenue into a cost is going to be an interesting balance, but they’ve got great brands and they will figure it out,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"