Netflix is the lucky company to get exclusive rights to Walt Disney Company’s movies. The company is the first to be able to stream movies for a major studio instead of having them go to a premium TV channel. Fans don’t need to get too excited because the deal doesn’t begin until Disney’s current contract with Starz expires in 2016.
A Sweet Deal For Netflix
Netflix will get exclusive rights to Pixar, Marvel, and Lucasfilms. This gives it an edge over competitors like Amazon Instant Video and Hulu Plus. Netflix chief content officer, Ted Sarandos, said that this deal is a leap forward in internet TV. Netflix subscribers will have access to some of the highest quality family films available today.
Movies made by DreamWorks Studios from Steven Spielberg are not part of the deal. It distributes its movies separately and uses Showtime.
Netflix will be able to stream the movies from Disney around seven or nine months after they make their appearance in theaters. This is similar to the Starz agreement, but does not DVD rentals.
Netflix has reached agreements similar to this one with smaller studios. These include DreamWorks Animation, Relativity Media, and the Weinstein Company. The news of the agreement caused Netflix’s stock to jump 14 percent, which was the biggest gain in one day since January 2012.
What About Starz?
Starz says it is going in a different direction and wanted to end the deal with Disney to give it more money to spend on original programming. The company plans to create exclusive high-quality series.
The partnership between Disney and Netflix may open the door for other big name studios to do the same thing and promote their movies through a new venue instead of the traditional choice of premium TV channels.