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Get ready for an all-Disney streaming service

Walt Disney is nixing its big Netflix deal to start its own streaming service.

Way back in 2012, Disney and Netflix struck a reported $200 million-plus deal: Starting in 2016, all of Disney's new films would be available for subscription streaming only on Netflix in the U.S. 

Now, not even a year since the deal went into effect, Disney is taking it back, canceling the huge deal.

Why? Because Disney wants its own streaming service.

The Walt Disney Company announced its ambitious new plans Tuesday. The goal is to have a direct-to-consumers Disney streaming service available in 2019. That will include Toy Story 4, the Frozen sequel, a live-action Lion King, and more.

Disney also promises more exclusive content, and shows from Disney Channel, Disney Junior and Disney XD.

And consequently, Disney said it "will end its distribution agreement with Netflix for subscription streaming of new releases" at that time.

Bob Iger, the head of Walt Disney Company, said the media landscape "is increasingly defined by direct relationships between content creators and consumers." Moving to its own subscription service means Disney will give them flexibility and cut out middle companies.

There's no word on what the price might be at this point.

Marvel and Star Wars are up in the air

The Netflix deal was for all Disney brands, including the Marvel, Pixar and Star Wars properties.

Walt Disney's announcement Tuesday only indicates Disney and Pixar films as being on its new on-demand service. And Variety reports it hasn't been decided what will happen with Marvel and Star Wars titles. 

They could end up on Disney's service ... or be part of a third-party streaming app like Netflix ... or Disney could spin them into their own dedicated streaming services, Variety explains.

So that's still TBD.

Also unknown is what will happen to the current Disney content on Netflix – the release leaves wiggle room for 2016-2018 releases (like Moana, which just got there in June) to stay on Netflix as planned. 

Disney is spending a bunch of money

To make all this happen, Disney dropped $1.58 billion to purchase majority ownership in a company called BAMTech – a streaming, commerce and analytics service owned by Major League Baseball's media company MLBAM.

Forbes notes there'd been speculation Disney might straight up try to buy Netflix, but that didn't pan out.

Netflix hasn't commented on the Disney decision as of Tuesday evening, Fox Business says. But it's definitely seen as a blow – Netflix's stock fell after the announcement.

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