Disney CEO: Marvel, Star Wars to be part of streaming service


Disney CEO: Marvel, Star Wars to be part of streaming service

Speaking at a question-and-answer session at a conference, Iger also clarified some of the details of the streaming service.

Netflix played down the effect of Disney's announcement, and said it would continue to do business with Disney globally, including its relationship with Disney's Marvel TV. Disney, for example, is also launching an ESPN sports streaming service early next year.

For Netflix, Disney's decision will add to the pressure for it to create appealing original content of its own in order to replace some of the high-profile franchise films it will lose starting in 2019. It will launch sometime in late 2019. After Iger said the company's earnings will be "roughly" the same as previous year, shares for Disney dropped by 2.9%, according to CNBC.

The announcement ends speculation about what would happen to the Marvel and Lucasfilm titles now being streamed on Netflix.

Netflix will not get Lucasfilm's "Star Wars" or Marvel Entertainment films beginning with 2019 releases.

Disney announced this streaming service in August, which immediately began speculation about the future of the two beloved properties. Under that pact, Netflix pays about $200 million per year to Disney, analysts estimate - which is around 3% of Netflix's total projected content budget of $7 billion for 2018.

Disney is one of the most recognized names on Netflix, but it is not the company first to pull away. Rhimes, the Grey's Anatomy and Scandal creator, has spent more then a decade at Disney's ABC.

The Dow Jones Industrial Average was trading in negative territory Thursday afternoon, with shares of Walt Disney Co., proving the biggest drag on the benchmark after its CEO issued an earnings warning. Most importantly, he confirmed that all of the MCU movies and the Star Wars movies are going to be on the service from the start.



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