The live-action reboot had been due in cinemas, but the company has now said it will be put on Disney+ in the US.
The UK Cinema Association said it understands the same will happen in the UK, which is "hugely disappointing".
Chief executive Phil Clapp said: "For many this will seem a step backwards rather than forward."
Cinemas have been reopening in the UK since July, but face a battle to tempt fans back. Most new releases have been delayed or released online.