Disney the Streaming Media Giant

Disney makes several moves to become “Disney the Streaming Media Giant.”

The business of streaming TV shows and movies continues to rapidly shift. On August 8th of 2017, Disney announced several moves to prepare for this shift and proactively stake their future in providing streaming content to consumers.

Disney the Streaming Media Giant

Disney Streaming Media Channels… Think Netflix or HBO…

Disney is launching its own streaming media channels (services) that will be available directly to consumers. These new streaming media channels should be available to consumers in 2019.

Disney plans to offer streaming media channels that includes content from their large library of Disney and Pixar movies and shows. Additionally, Disney has committed to creating original movies, TV series, and exclusive content for these channels.

New And Expanded ESPN Streaming Media Channels

 

 

 

 

 

Did you know Disney owns ESPN?

Disney has plans to launch new and expanded ESPN streaming media channels in early 2018.

ESPN is the king of sports programming. The shift in TV consumer viewing from cable TV to streaming media has caught the attention of Disney, and ESPN is responding so that they can stay the king.

Why is ESPN Responding Now?

The entertainment industry must respond to the huge shift in the industry.

ESPN has struggled recently. That struggle is at least in part due to the shift in how TV shows are produced and provided to consumers. For various reasons, revenue from ESPN programming has declined while costs have increased. ESPN has recently experienced higher programming costs, generated lower advertising revenue, and been burdened with contract payouts for on-air talent.

ESPN must respond to stay competitive and deliver what customers want in streaming TV.

BAMtech Streaming Technology

BAMtech is a giant player in the streaming technology world. The media companies of the NHL, MLB, PGA Tour, and the WWE Network all use BAMtech streaming technologies.

$2.58 Billion Disney Investment in BAMtech

Disney has made two large purchases of BAMtech so that they can leverage the streaming technologies of BAMtech.

• $1 Billion – 33% purchase of BAMtech in August of 2016
• $1.58 Billion – 42% purchase of BAMtech on August 8th of 2017

Disney now owns 75% of BAMtech.

Disney Announces An End To Its Agreement With Netflix

 

 

 

 

 

 

In a big and related move, Disney will end its distribution agreement with Netflix beginning in 2019.

This impacts Netflix.

But, Netflix has demonstrated great vision in the streaming market. Their vision includes getting some of the best TV shows and movies from cable and broadcast network providers. Netflix is also going full-throttle creating Netflix Original content such as:

• Orange Is The New Black – TV Series
• The Keepers – Documentary
• Maz Jobrani – Comedy Special – See more Netflix Original Comedy Specials
• War Machine – Movie staring Brad Pitt

As a result Netflix is quietly becoming a Hollywood production mega-player of movie and TV series. For example, on August 8th, 2017, Netflix announced they signed David Letterman to a 6 episode long-form interview styled talk show.

Disney’s Other Media Networks

The Walt Disney Company has financial interests in other media networks too.

• A&E Networks, including History network
• ABC Entertainment Group
• ESPN Inc.
• Hulu(partial partnership)
• Marvel Studios; Comics; Characters (multiple divisions and partnerships)

These media networks further strengthens Disney’s position in delivering streaming media.

RELATED: Disney the Streaming Media Giant (Part 2)

Conclusion

Customers are demanding more choices in how they watch TV.

The shift from cable TV to streaming media is changing the cable TV and the movie entertainment industry. Disney is showing the entertainment industry its vision and leadership by taking steps to offer streaming TV shows and movies directly to consumers.

Ultimately, this leads to more choices for consumers, which is always good.