As reported by Coming Soon, Disney CEO Bob Iger recently spoke at the Bank of America Merrill Lynch 2017 Media, Communications & Entertainment Conference and gave some details on the still pretty mysterious, unnamed Disney streaming service.
"We have now decided that we will put the Marvel and "Star Wars" movies on this as well", Iger said. This is includes Daredevil, Jessica Jones, Luke Cage, Iron Fist, The Defenders and future Marvel-Netflix properties.
The company plans to release two streaming apps, which will be Disney's foray into direct-to-consumer services. The development came amid negotiations between Disney and Netflix over the streaming rights to Marvel and Lucasfilm titles.
"Star Wars" and the Marvel comic-book movies will join Disney's upcoming streaming service, potentially giving it broader appeal beyond families with young children. Iger also narrowed down the launch window for the new service, saying he anticipates it will be ready by late 2019.
Furthermore, Disney-flix (our name for it) will be producing "4-5 original movies annually", plus Disney Channel will "make 4-5 original series" and "original TV movies" every year, according to a Wall Street Journal reporter who heard Iger's remarks. Under that pact, Netflix pays about $200 million per year to Disney, analysts estimate - which is around 3% of Netflix's total projected content budget of $7 billion for 2018.
And while Netflix was still hoping to reach a new deal for "Star Wars" and Marvel pics, Wall Street wasn't pinning its hopes on that happening. When Disney announced its streaming service in August, Netflix said that it continued "to do business with the Walt Disney Company on many fronts", and it appeared to be negotiating for continued access to some of the studio's films.
The Disney app will launch after Disney's film output deal with Netflix ends. Disney shares were down almost 3% in midday trading after the news broke, on what has so far been a down day overall for the Dow and S&P 500 indexes.