Recently, Disney announced that it is developing its own streaming service, which should be available by 2019. To avoid going into competition against themselves, all Disney content will be removed from Netflix by that time.

Neowin reported that their current contract ends in 2019, so the plans were for a clean break once that period runs out. Trying to not lose a huge source of content, Netflix tried to negotiate with Disney to reach a compromise.

During a Q&A session at this week's Bank of America Merrill Lynch 2017 Media, Communications & Entertainment Conference, Disney CEO Robert A. Iger confirmed they decided to remove all "Marvel" and "Star Wars" movies from Netflix.

So, it seems like negotiations did not go so well.

Complicated

The biggest problem comes in the form of "Daredevil," "Jessica Jones," and other original Netflix series adapted from Marvel comics. As both companies have a claim to them, it could lead to a sticky situation, although there are probably deals in place just in case something like this happened. Most likely, they will not be affected, although it might impact plans for the development of future series.

The Disney Ceo specifically mentioned "Marvel" and "Star Wars," and this might have been done simply because they are Disney's hottest products and the ones least identified with the company. So, the declaration that these movies will be removed might be their way of saying that everything owned by Disney is leaving Netflix.

Good or bad?

Obviously, this is a setback for the streaming service and for those who use it.

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It will remove a substantial chunk of content and guarantee that future Disney movies will not be added.

Nevertheless, a business sector tends to flourish when there is more competition. Although Amazon Prime and Hulu are decent enough, they do not hold a candle to Netflix, especially outside of the United States. Disney is a name recognized all over the world, capable of challenging on all fronts.

This can only benefit viewers from outside America, in regions where Netflix offers a considerably more limited selection of shows and movies to watch. This is not necessarily their fault, as licensing issues often arise when broadcasting in different countries, but it might push them to improve the content available for these areas.

Once we receive more information about Disney's new streaming service, it will be interesting to see how it measures up compared to what is currently available.