Disney will debut its own branded streaming service for USA consumers in 2019 and later expand the service worldwide.
While Disney and Pixar-branded films are being removed from Netflix, that may not be the case for Marvel Studios and Lucasfilm titles.
Netflix Chief Content Officer Ted Sarandos told Reuters "we are still in active discussions" with Disney about the possibility of securing a deal to retain the rights to stream Marvel and Lucasfilm releases on Netflix after 2019.
Disney Chief Executive Officer Bob Iger told analysts the company had not yet decided where it would distribute superhero films from Marvel Studios and movies from "Star Wars" producer Lucasfilm, which the company owns, at that time.
Shares of Netflix were up 1.3 percent at $171.41 in afternoon trading after falling 5 percent in the two days following Disney's announcement.
Netflix, the popular video streaming service, wants to keep the famous Marvel and Star Wars films of the Walt Disney, which itself is launching into the online sphere.
Disney's decision to launch its own OTT service in the United States won't affect Disney, Marvel or Star Wars content included in Netflix's catalogues across Latin America and Spain.
Disney's plan to stream its content directly to consumers is "a natural evolution" for traditional media companies that Netflix expected, Sarandos said in an interview at an event to celebrate Emmy nominations for Netflix drama "The Crown".