The phenomenon known as cord-cutting is slowly bleeding the subscribers of cable channels. Nowhere is this more evident than at ESPN, which is bleeding subscribers in the high single digits every quarter. It came as no surprise when Disney announced it is launching two streaming services in the next two years.
The first streaming service out next year is the ESPN streaming service. There is a little bit of confusion about what this service will include. During the call, Disney CEO Iger declined to mention specifics other than the 10,000 hours of sporting content that will launch with the service. ESPN will use the technology from Disney’s latest acquisition BAMTech.
The second streaming service will include some (but not all) of the TV and movie content from Disney’s properties. The launch of the streaming service will coincide with the removal of all Disney content from Netflix. The major networks have bristled at the thought of Netflix growing with their content catalogs. However, they have not been willing to forego the licensing fees Netflix pays. Disney is the first to make a clean break.
Disney has not included the latest Star Wars movies as part of the streaming service. It appears to be considering a separate streaming service for its premium new content. Although fans will rail against a separate service for Star Wars and Marvel.
Netflix responded that the announcement does not affect its partnership with Marvel for its acclaimed TV series Daredevil, Punisher, Jessica Jones, Luke Cage, and the Defenders.