Walt Disney will no longer provide its films to Netflix from 2019, and instead will launch its own standalone services for films and sports streaming.

The news came as Disney said its quarterly profit had been hit by declining subscriber numbers at its flagship sports channel ESPN and lower income from theatrical releases.

Revenue as a whole nudged down to $14.24bn (£11bn) in the three months to the end of June from $14.28bn a year earlier. Shares in Disney fell as much as 4pc in after hours trading.

The streaming service for ESPN will launch next year and is expected to feature 10,000 live events each year, including Major League Baseball.

Its online entertainment service will the launch the following year, and will feature upcoming films from Disney studios and Pixar, including Toy Story 4 and Frozen 2, as well as exclusive TV and film content.

It plans to end its distribution deal with Netflix that year, and, speaking to CNBC, Disney chief executive Bob Iger said the company was going to move all its content off Netflix, despite having had a "good relationship".

Disney said the streaming services would give it "much greater control over our own destiny in a rapidly changing market". Disney is paying $1.58bn for a majority stake in the streaming arm of Major League Baseball BAMTech, the technology of which it will use as a base for its services.