Starting in 2019, Walt Disney Co will stop providing new movies to Netflix Inc.
The company will launch its own streaming service as the world's biggest entertainment company tries to capture digital viewers who are dumping traditional television. Disney's defection was announced on Tuesday.
It came alongside quarterly results showing continued pressure on sports network ESPN.1
It's a calculated gamble that the company can generate more profit in the long run from its own subscription service rather than renting out its movies to services like Netflix.