Disney is saying goodbye to Netflix and will aggressively enter the crowded subscription streaming market.
There will be one streaming service for sports and another for films and television shows, the company announced on Tuesday. The same day it reported weak fiscal third-quarter earnings.
Disney is trying to appeal to younger audiences who are choosing Netflix and other digital platforms over traditional television.
The streaming services will give Disney “much greater control over our own destiny in a rapidly changing market,” CEO Bob Iger told analysts on a conference call. He described the moves as an “entirely new growth strategy” for the company.
The sports streaming service, which will be under the ESPN name, will be available next year, and is expected to feature 10,000 sporting events annually, among them Major League Baseball, hockey and soccer games, tennis matches and college sports through ESPN’s popular mobile app.