Disney pulls away from Netflix to launch its own streaming service

Walt Disney Co. announced Tuesday that it would pull its children’s programming from Netflix in 2019 to launch its own competing streaming video service. Disney’s stock dropped by nearly 4 percent after the announcement, which Disney unveiled along with its quarterly results. The Disney-branded streaming service will be similar to one its sports network, ESPN, is launching in 2018. Analysts said spending on the technology needed to provide the service could weigh on Disney’s future earnings. Disney is betting it will make more money in the long run by charging its own subscribers than it does renting its content to Netflix. Shares of Netflix dropped by 3 percent.

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