On Tuesday, in after hours trade, Netflix (NASDAQ:$NFLX) saw its shares drop more than 3%. Why? It can all be traced back to the Walt Disney Co. (NYSE:$DIS), as the company announced in its earnings report that it would be removing its films from the video streaming behemoth’s platform.

In the report, Disney disclosed that it will be launching its own direct-to-consumer service service in two years time. Additionally, the Burbank, California-based company announced a new ESPN video streaming service that will be available next year.

Like Netflix, after the entertainment company posted mixed Q3 results (beat on earnings, miss on revenue), Disney shares were falling in after-hours trade.

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Author Caroline Harris

About the author: Caroline Harris is a third-year student at Capilano University in North Vancouver, Canada. Having already completed an Associates Degree in Psychology, Caroline is now finishing her Bachelor's degree in Communications. In preparation for working in the advertisement sector, Caroline is writing financial content and analysis. On a daily basis, Caroline works on articles regarding the following topics: finance, cryptocurrency, technology, and politics.