Disney said it will be pulling its movies from Netflix and will launch a Disney streaming service of its own in 2019.
It also said Tuesday it will launch an ESPN streaming service early next year.
Details of the Disney streaming service were sketchy Tuesday with CEO Bob Iger saying that if a movie is Pixar- or Disney-branded, it will probably appear exclusively on the new service — including shows and movies made specifically for the service — but the jury is still out on Marvel and Star Wars films.
ESPN has been losing TV subscribers for a few years and an online standalone product has been predicted for months, but ending a distribution agreement with Netflix beginning with the 2019 theatrical slate caught investors off guard, and Netflix shares quickly sunk 4 percent on the news in after-hours trading.
Disney made the announcements Tuesday while reporting quarterly earnings.