The home of international and world-renowned fictional characters is set part ways to the livestreaming company Netflix.
Disney said on Tuesday that it will end its partnership with the streaming service in 2019.
The company also announced it will launch its own streaming services, and plans to acquire a majority stake in BAMTech, a major streaming and marketing service.
As of now, Disney’s cable networks, such as ESPN, make up the majority of the company’s earnings. However, that proportion has fallen in recent years as viewers change the way they consume entertainment.
Disney hopes that the new streaming services are a way to connect directly with consumers and take advantage of new viewing habits.
According to press information, Disney is paying $1.58 billion for majority ownership of BAMTech.
It can be remembered that last August, Disney acquired a 33% stake in that company, which is a spinoff from Major League Baseball Advanced Media, for $1 billion.
Also, the company disclosed that it will launch an ESPN-branded streaming service in 2018, and a separate Disney-branded streaming service in 2019.
The Disney service will be the only place where U.S. viewers can watch new live action and animated movies from Disney and Pixar, including “Toy Story 4,” the “Frozen” sequel and “The Lion King” live-action movie.
Also, it will feature content from the Disney Channel, Disney Junior and Disney XD.
The move for its own streaming services come as ESPN has struggled with a drop in subscribers and ad revenue as well as a round of high-profile layoffs and departures at ESPN earlier this year and in 2016.
According to a spokesperson, Marvel TV series like “Luke Cage,” “Jessica Jones” and “The Punisher” will continue to live on Netflix — for now.
Netflix (NFLX, Tech30) shares fell 5% after hours, while Disney (DIS) slid 4%.