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Disney creates exclusive deal with Netflix


Netflix will be the only source of new Disney releases

Disney, without a doubt, produces some of the most cherished films in entertainment. So it’s a momentous achievement for Netflix to become the exclusive source of new Disney releases. This means that only weeks after Disney theatrical releases stop showing in theaters Netflix subscribers will be the first to stream them. We do not know exactly how long it will take for a Disney movie to move from theaters to Netflix, but viewers can expect to stream them around the same time they become available on DVD.

Disney has even more to offer Netflix viewers as their recent acquisition of Lucasfilm gives them access to future Star Wars films. Says Disney CEO, Robert Iger, “this is one of the great entertainment properties of all time, one of the best branded and one of the most valuable, and it’s just fantastic for us to have the opportunity to both buy it, run it and grow it.”

This is an epic move by Netflix when you consider Disney’s 2015 purchase of Marvel Entertainment also gives Netflix streaming rights to all the Marvel movies.

frozenIn a statement on Netflix’ blog, Ted Sarandos says,
“from September onwards, Netflix will become the exclusive US pay-TV home of the latest films from Disney, Marvel, Lucasfilm and Pixar. And we’re excited to be bringing you new and exclusive Netflix Original movies including Mascots from the master of low-key comedy Christopher Guest (Waiting for Guffman, Best in Show, A Mighty Wind) and War Machine, from acclaimed Australian director David Michod and starring Brad Pitt, in the seriocomic tale of the U.S. military adventure in Afghanistan.”

A deal long in the making

This is not a new deal as it was first struck back in 2012. However, it could not go into effect until Disney’s former contract with the pay channel, Starz, had ended. For the rights to these Disney movies, Netflix is paying hundreds of millions of dollars every year.

So why is Netflix willing to pay so much for the rights to Disney movies? Netflix has struggled recently with a perception that they no longer have a good selection of movies, as seen in Netflix’s own promo video (below).

Netflix sees their deal with Disney as a way to keep their subscribers happy while hoping to attract new customers in an ever more aggressive streaming market.