Walt Disney Studios has made an exclusive deal with Netflix
to carry the Disney films; currently Starz owns those rights.
Normally, the large Hollywood studios show their movies on pay TV, such
as Starz, HBO or Showtime; this is the first time one of the studios has
gone exclusively with web streaming. Netflix
currently has deals with DreamWorks Animation and the Weinstein
Company, but the addition of movie giant Disney is a huge gain for the
company.
Disney titles will be available immediately; new release Disney films
will be available for streaming in 2016. The deal also includes films
upcoming films from the newly-acquired Lucasfilm and direct-to-DVD
movies.
No financial information on the deal was released, but some speculate
that Disney could be earning $300 million a year from the agreement.
The deal is not so good for Starz. They do have films available from Sony,
but the channel's offerings will diminish greatly with the loss of
Disney. Interestingly, Starz released a statement this week stating
that the break-up with Disney was their decision, not Disney's. "Our
decision not to extend the agreement for Disney output past that time
allows us the opportunity to implement our plan to dramatically ramp up
our investment in exclusive, premium-quality original series, which will
best meet the needs of our distributors and subscribers," the company
said in the statement.
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