R.I.P Cable

Disney CEO Bob Iger announced that the company is ending its licensing deal with Netflix and will start offering Disney and Pixar movies on a Disney-branded subscription service starting in 2019. Iger also said that Disney is launching an ESPN OTT service.

“This acquisition and the launch of our direct-to-consumer services mark an entirely new growth strategy for the company, one that takes advantage of the incredible opportunity that changing technology provides us to leverage the strength of our great brands,” said Iger.

In the U.S. the new Disney app will be the exclusive, subscription video-on-demand home to upcoming releases such as the Frozen sequel, Toy Story 4, and the live-action version of The Lion King. It will also offer access to Disney’s library of TV shows and movies, as well as new, original Disney shows and movies that will be created for the service.

The ESPN-branded, multi-sporting app, will launch in early 2018 and will include about 10,000 live games from major sporting leagues as well as collegiate sports. So far, there’s no word yet as to whether NFL or NBA games will be on the service. The new app is an “enhanced” version of the current ESPN app, which will continue to allow pay TV subscribers access to ESPN programming.

Why it’s hot:

This puts one of the final nails in cable’s coffin. Recent research states that declines for second quarter of 2017 came close to a million subscribers with Dish Network, DirectTV, and AT&T hit especially hard. This cannot be helping their case. However, this makes for a much better customer experience – providing their preferred shows and programs at their fingertips!

Source: Fast Company