Disney said Tuesday that it has invested $1 billion in the BAMTech video streaming service, Major League Baseball's direct-to-consumer broadcast company, as it positions itself in the fast-changing media industry.

Disney will acquire a 33 percent stake in BAMTech, with the option in the coming years to take a majority stake. BAMTech will be separated from MLB under the transaction.

The transaction comes as broadcasters and content producers respond to a surge in streaming video, with more consumers using Netflix and similar services instead of conventional cable offerings.

Disney said BAMTech, which has nearly 7.5 million paid subscribers, will provide a platform to stream content from the entertainment giant's broadcast units, including its sports network ESPN.  

"Our investment in BAMTech gives us the technology infrastructure we need to quickly scale and monetize our streaming capabilities at ESPN and across our company," said Disney chief executive Bob Iger.

"We look forward to working closely with BAMTech as we explore new ways to deliver the unmatched content of The Walt Disney Company across a variety of platforms."

Separately, Disney reported a 2.8 percent rise in third-quarter earnings to $2.7 billion.