Disney to pull all its movies off Netflix

Disney's future is becoming clearer—and that's going to mean developing its own platforms to reach consumers.

Step 1 — break off its relationship with Netflix.

Disney announced on Tuesday that it will pull its movies off the Netflix platform in 2019, marking the end of a multi-year relationship that helped Netflix grow into a dominant at-home entertainment company.

Step 2 — start its own streaming platform.

Disney also said that it is planning its own Netflix-style service that will debut in 2019.

In addition to a Disney streaming service, ESPN — the sports cable behemoth — will also launch its own streaming service. Such a move has been rumored for a while, now Disney is making it official.

It's a tough break up for the companies, which had until now enjoyed a lucrative relationship. Shares in both companies declined following the news.

It's not a huge surprise, but it's still a big loss for Netflix, which will now be missing one of the most-loved libraries in all of media, particularly as it pertains to children. Netflix has been bolstering its own youth-focused content for a while.

While Netflix has been developing its own content, Disney has been working out how it will reach consumers without having to go through gatekeepers like Netflix. Once launched, Disney's streaming service will serve as direct competition to Netflix.

Netflix and Disney have been partners since 2012, when the companies struck a deal before streaming movies and TV shows over the internet had become an industry-changing phenomenon.