Disney to scrap Netflix ties, eyes its own streaming site

Aug 09, 2017, 6:41 AM EDT
(Source: bargainmoose/flickr)
(Source: bargainmoose/flickr)

Media giant Walt Disney, hit by falling television subscriptions and a stiff competition from online video, has announced that it will pull its movies from Netflix and float its own online streaming service to reach the U.S. consumers with a direct feed.

The announcement came as the company posted static revenue along with a 9% fall in quarterly profits compared to the corresponding period in 2016, writes the BBC.

Disney’s direct-to-consumer streaming service will be operational in 2019, notes CNBC. The announcement rattled Netflix stocks, which dropped by about 5% after the news.