Disney will debut its own branded streaming service for United States consumers in 2019 and later expand the service worldwide.
Netflix Inc is in "active discussions" with Walt Disney Co about keeping Marvel and "Star Wars" films after 2019, when new Disney and Pixar movies will stop appearing on the streaming service, a senior executive said late on Thursday.
It will start putting the movies on the new Disney-branded online service that year - in a major move taking the media company away from the traditional satellite and cable operators.
Disney Chief Executive Officer Bob Iger told analysts the company had not yet decided where it would distribute superhero films from Marvel Studios and movies from "Star Wars" producer Lucasfilm, which the company owns, at that time.
(The migration will not include Marvel properties like Jessica Jones and Luke Cage which are under a different deal.) Chief Content Officer Ted Sarandos told Reuters that Netflix are still discussing an agreement that could keep the Lucasfilm and Marvel Entertainment around into the 2020s.
Shares of Netflix were up 1.3 percent at $171.41 in afternoon trading after falling 5 percent in the two days following Disney's announcement.
Right now, the Disney films which leave theaters are run by Netflix in the US. According to a new report from Reuters, Netflix is making a play to retain some colossal titles that exist under the Disney banner.