Netflix is slipping after Disney announced it will be ripping its movies from the platform (NFLX, DIS)

stranger things netflix final

Netflix is falling after it was announced that it would be losing a big source of popular content.

In its earnings call after the bell Tuesday, Disney announced it would be pulling its movie content from Netflix’s platform in order to begin its own direct-to-consumer service.

Netflix fell after the news and is down 2.96% in early trading on Tuesday.

Netflix has said that desirable content is a big driver to growing its user base, so losing popular Disney content is a blow to the streaming giant. Disney’s popular Marvel content is not expected to be part of the new Disney service and is expected to remain on Netflix even after the movies are pulled.

Disney said in its earnings release that the new service should be expected in late-2019.

John Janedis, an analyst at Jefferies, said the move simply reinforces how important Netflix’s original content strategy is. Wall Street has assumed Netflix wouldn’t be able to renew all of its content deals perpetually so making its own content will continue to be important for the company, Janedis said.

To bolster its original content offerings, Netflix recently made its first ever acquisition in Millarworld. The cult comic book company is known for the storylines behind movies like “Kickass” and “Kingsman.”

Netflix is up 35.19% this year and is currently trading at $172.49.

Watch Netflix’s stock price in real time here…

Netflix stock price

SEE ALSO: Disney is falling after delivering mixed quarterly results and saying it’ll ditch Netflix

Join the conversation about this story »

NOW WATCH: Wells Fargo Funds equity chief: Shorting anything is ‘playing with fire’


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s