Disney bought BAMTech/MLBAM today for $1.58 billion

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Disney is ending its distribution agreement with Netflix for new movie releases, while it’s also buying majority ownership of BAMTech — the streaming-video company founded by Major League Baseball — in a $1.58 billion deal.

The moves set a clear course for the media giant to launch Netflix-style direct-to-consumer internet services from ESPN and Disney.

The media conglomerate said it will launch an ESPN-branded multi-sport video streaming service in early 2018, followed by a new Disney-branded direct-to-consumer streaming service in 2019. Those will be powered by BAMTech, in which Disney will hold a 75% stake. The current plan is for Disney and ESPN streaming services to be available for purchase directly from Disney and ESPN; in app stores; and from authorized pay-TV partners.

The revised plans for the ESPN-branded multi-sport service are much broader than the over-the-top play Disney originally had slotted for the end of 2016. The new service will include about 10,000 live games from leagues including Major League Baseball, the National Hockey League and Major League Soccer. It also will include collegiate sports and Grand Slam tennis coverage.

“For many sports fans, this app will become the premier digital destination for all their sports content,” Disney said in its announcement.

Even with the launch of ESPN’s subscription sports service, Disney said OTT packages for individual sports will also be available for purchase, including MLB.TV, NHL.TV and MLS Live. The new service will be based on an “enhanced version” of the current ESPN app, which will continue to offer pay-TV subscribers access the ESPN programming on an authenticated basis.

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