Posted in: Broadband Video Companies, Deals, Funding & Acquisitions, News, Video on Demand by Dave Parrack on December 8, 2012

disney-logoNetflix has signed a new deal with Disney which will see first-run movies from the media company streaming through the service from 2016. This is a big deal for Netflix, and its shares immediately rose after the news was revealed.

Blurred Lines

The lines between release windows and methods of viewing content are being blurred more and more as time goes on. We’ve already seen films released on demand as well as, or sometimes even instead of, in theaters.

This trend is set to continue, especially as the streaming companies find more money to offer traditional media companies for their wares. Money talks, even (or perhaps especially) when it comes to the big players.

Netflix Loves Disney

There are three elements to the deal between Netflix and Disney.

The first, and clearly most important, is the multi-year agreement starting in 2016 which will see new movies released on Netflix within the first pay window. This includes cinematic releases from Disney, Walt Disney Animation Studios, Pixar Animation Studios, Marvel Studios and Disneynature.

The second part of the deal sees direct-to-video releases from Disney arriving on Netflix from 2013. While the third part of the deal sees some of Disney’s extensive back catalog added to Netflix immediately. This includes classics such as Dumbo, Pocahontas, and Alice in Wonderland.

Disney movies were previously available on Netflix thanks to an agreement with Starz, but that ended earlier this year. This new deal means Starz loses what Netflix is about to gain.

Conclusions

This is an amazing deal for Netflix, and also a good one for Disney. Netflix gets first-run movies that are sure to draw in new subscribers, while Disney gets at least $300 million annually (rumored) for its part. No wonder the Netflix share price immediately rose and has stayed high ever since.

This deal also represents another indication that online streaming is growing up. Between these exclusive agreements and the production of original content, streaming services such as Netflix are becoming more like traditional media companies by the day.

Via: The L.A. Times

Related Ad

Ad: Disney Memorabilia Deals on eBay

Posted in:

Have Something To Say?

Nobody Has Commented Yet
Ask a Question Or Offer Your 2 Cents:





Keep up to date with Web TV, Video and IPTV News:

Subscribe to Web TV Wire by Email
Subscribe to Web TV Wire via RSS