The company made three huge announcements today: first, the House of Mouse has agreed to pay $1.58 billion to acquire the majority ownership of streaming platform, BAMTech, LLC; next, that the company will launch an ESPN-branded multi-sport video streaming service in early 2018, and finally, the big news that's got fanatics jumping for joy (and likely throwing Netflix into a tizzy) is that there will be a new Disney-branded streaming service, which will be rolled out in 2019.
Like its competitor, Disney says that it will also make "significant investment" in its original movies, TV shows and short-form content. Disney also says that the service, which is still a year and a half away, will showcase the brand's vast and lengthy library of content, which Disney and Pixar movies and Disney Channel, Disney Junior and Disney XD television programming.
"This acquisition and the launch of our direct-to-consumer services mark an entirely new growth strategy for the Company, one that takes advantage of the incredible opportunity that changing technology provides us to leverage the strength of our great brands."
The statement read, "Disney will end its distribution agreement with Netflix for subscription streaming of new releases, beginning with the 2019 calendar year theatrical slate."
In an interview with CNBC earlier today, Iger said that the price for the service will be competitive with Netflix.