BAMTech can help Disney leave Netflix for their own digital platform

Netflix and Disney go together well. In fact, just about any television show or movie goes well on Netflix. As the leading entertainment service, it is convenient for everyone when a major company utilizes the platform.

The two companies signed an exclusivity deal in 2012, where Disney movies, including ones from Disney-owned companies such as Marvel and Pixar, would come to Netflix in 2016. But when the deal ends, it could free Disney to place their movies on a different streaming platform. Maybe Disney will eventually start their own “Netflix” with an existing company.

Frank DiPietro of The Motley Fool wrote, “In August 2016, Disney bought a 33% stake in BAMTech, a digital media company spun off from Major League Baseball. BAMTech has 7.5 million subscribers, and its over-the-top (OTT) clients include HBO NOW, the NHL, the MLB, the PGA Tour, WWE Network, and Riot Games’ League of Legends e-sports content.”

“Disney put $1 billion into the network and has the option to take majority ownership in the coming years.”

Later on, the author mentioned Netflix Chief Content Officer Ted Sarandos held a conference call. When someone asked if the Disney and Netflix deal would continue, Sarandos said, “we’ll see.”

Currently, Disney is losing subscribers and profits on its long-running sports cable channel ESPN. In general, the industry is shifting towards online streaming platforms. The old cable format is still around but fading.

While Netflix is the biggest streaming platform, Disney needs to continue making deals with Netflix in order to keep bringing content over. For a while, a rumor came up on Disney buying Netflix, but nothing has happened. One problem with buying Netflix is the enormous cost, as streaming giant comes at a premium as the leading service.

By creating their own “Netflix,” Disney can save on cost and freely promote their content above anything else. Other companies who provide their content on a hypothetical Disney streaming platform would come secondary.

Of course, if any change occurs, it will not happen for a while as the current deal needs to run out.

We will see if Disney wishes to take a shot on their own big streaming platform.

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