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Disney has announced it intends to remove its movies from Netflix and launch its own rival direct-to-consumer streaming service starting in the US in 2019.
The new service will be based on technology provided by video-streaming firm BAMTech, the company announced it would pay $1.58bn to buy an additional 42 per cent stake in the company which it took a minority stake in last year.
Chief executive Bob Iger said: “This represents a big strategic shift for the company.”
“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 much greater control of our destiny in a rapidly changing market.”
Disney’s ‘family focused’ films including the upcoming Frozen 2, Toy Story 4 and live-action Lion King will be available on its own streaming service, which will launch first in the US and then globally.
Iger said the company has not yet decided whether the move to its own service will include the Star Wars and Marvel franchises.
Netflix said it would continue to work with Disney globally, including keeping its exclusive shows from Marvel television.
“US Netflix members will have access to Disney films on the service through the end of 2019, including all new films that are shown theatrically through the end of 2018,” the company said in a statement.