Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

AP

Disney announced on its Q2 earnings call today that it's yanking it's entertainment content from Netflix beginning in 2019, and will instead create its own direct-to-consumer streaming video on-demand (SVOD) service and an additional over-the-top (OTT) streaming service that will separately house all of its ESPN and sports content.

  • CEO Bob Iger says Disney will use its capital to invest in a studio that will produce original content for its entertainment streaming bundle. The new SVOD platform will be the exclusive home in the U.S. for live action movies from Disney and Pixar.
  • Disney also purchased a 75% stake in BAMTech to power its over-the-top streaming service for ESPN. BAMtech is a streaming technology provider that's a joint venture between Baseball Advanced Media, Disney and the NHL. BamTech currently powers streaming for a bunch of networks, including HBO, MLB, and NHL. Disney announced Tuesday that it's pouring in an additional $1.58 billion in order to become the majority stakeholder in the company (up from owning 33% stake) and will utilize the technology reimagine its direct-to-consumer relationship with a new data-based streaming platform for ESPN.

Why the Netflix news matters: Iger says Disney is best-positioned to succeed in today's chaotic media landscape if it can capitalize on consumers' close relationship to the brand. To do this, Disney needs to move its business model closer to consumers and cut out the distribution middle man that is Netflix. With a standalone streaming package, Disney will need to negotiate new distribution deals with multichannel video programming distributor (MVPD) providers, like satellite providers and cable operators, although Iger says the company has not yet had these conversations.

Why the BAMtech news matters: Disney has been behind some of its competitors in transitioning into a digital-first, direct-to-consumer business model. One of the biggest rivals of Disney's ABC (and from a sports perspective ESPN), CBS, has had a streaming network for nearly three years and most of the major sports networks have been operating on streaming networks for years as well. BAMtech, which powered the MLB's streaming service, will give Disney access to a data-based platform that will transform the way Disney can sell ads, service content and connect with consumers.

What about other Disney assets, like Marvel and Star Wars? Unclear. Iger said they are working through the distribution, rights and streaming opportunities associated with those two brands. Netflix announced yesterday its first acquisition ever — Millarworld, a comic producer — which could have something to do with the void that Disney pulling its Marvel content from its platform will create.

Disney stock was down nearly 5% today in after hours trading. The company reported a 23% loss in cable revenue, due in part to advertising declines and high programming costs at ESPN.

Go deeper

Woman who allegedly stole laptop from Pelosi's office to sell to Russia is arrested

Photo: FBI

A woman accused of breaching the Capitol and planning to sell to Russia a laptop or hard drive she allegedly stole from Speaker Nancy Pelosi's office was arrested in Pennsylvania's Middle District Monday, the Department of Justice said.

Driving the news: Riley June Williams, 22, is charged with illegally entering the Capitol as well as violent entry and disorderly conduct. She has not been charged over the laptop allegation and the case remains under investigation, per the DOJ.

Biden will reverse Trump's attempt to lift COVID-related travel restrictions

Photo: Tasos Katopodis via Getty

The incoming Biden administration will reverse President Trump's last-minute order to lift COVID-19 related travel restrictions, Jen Psaki, the incoming White House press secretary, tweeted.

Why it matters: President Trump ordered entry bans lifted for travelers from the U.K., Ireland, Brazil and much of Europe to go into effect Jan. 26, but the Biden administration will "strengthen public health measures around international travel in order to further mitigate the spread of COVID-19," Jen Psaki said. Biden will be inaugurated on Wednesday, Jan. 20 and Trump will no longer be president by the time the order is set to go into effect.

Dominion sends cease and desist letter to My Pillow CEO Mike Lindell

Photo: Stephen Maturen/Getty Images

Dominion Voting Systems on Monday sent a cease and desist letter to My Pillow CEO Mike Lindell over his spread of misinformation related to the 2020 election.

Why it matters: Trump and several of his allies have pushed false conspiracy theories about the company, leading Dominion to take legal action. It's suing pro-Trump lawyer Sidney Powell for defamation and $1.3 billion in damages, and a Dominion employee has sued Trump himself, OANN and Newsmax.