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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