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Disney to leave Netflix to start its own streaming service

Starting in 2019, films from Walt Disney Studios and Pixar will no longer be found on the popular streaming service.

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"Moana" and other Disney films currently streaming on Netflix won't be there after 2018, according to the Walt Disney Company.

Disney announced Tuesday that it will launch its own subscription service in 2019 that will become the new home to films from Walt Disney Studios, Pixar and others under its umbrella. Those 2019 films will include "Toy Story 4," the sequel to "Frozen" and the live-action remake of "The Lion King."

Disney CEO Bob Iger told CNBC that while Disney has a "good relationship" with Netflix, his company is going to exercise an option in its agreement to leave the service. The films will stay on Netflix until the end of 2018. Marvel TV shows, such as "Daredevil" and "The Defenders," will stay on the service permanently, according to CNBC.

Disney also hasn't decided whether to include films from Lucasfilm, which makes "Star Wars," and Marvel in its new subscription service, The New York Times reported.

"It's possible we will continue to license them to a pay service like Netflix, but it's premature to say," Iger told the Times. "There has been talk about launching a proprietary Marvel service and 'Star Wars' service."  However, Iger added that Disney was cautious about creating stand-alone services for those franchises, according to the Times.

The move is a big shift for Disney, which first announced its agreement with Netflix in 2012 to make Netflix the exclusive online home for its films starting in 2016. Those movies began to pop up on Netflix in September 2016.

Netflix didn't respond to a request for comment.

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Coming much sooner than the movie service will be an ESPN-branded video-streaming service launching in early 2018, also announced by Disney on Tuesday.

That service is said to feature 10,000 games and events per year, including those from Major League Baseball, Major League Soccer and college sports. The service will also allow for the purchase of individual sport packages from MLB.TV, NHL.TV and MLS Live.

Both services were revealed as part of Disney's announcement that it's acquiring majority ownership of BAMTech, LLC, a streaming video and internet services company from Major League Baseball's internet company, MLBAM.

"This acquisition and the launch of our direct-to-consumer services mark an entirely new growth strategy for the company," Iger said in the announcement.

First published Aug. 8, 2:07 p.m. PT.
Update, 2:30 p.m. PT: Adds additional information on Disney's acquisition of BAMTech, LLC, more details on Marvel content staying or leaving Netflix, and the ESPN-branded video-streaming service. 

Update, Aug. 9 at 12:02 p.m. PT: Adds more information on Marvel and Lucasfilm content.

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