Disney has signed a massive movie licensing pact with Sony Pictures for the US that promises to bring Spider-Man and other Marvel properties to Disney Plus, starting with Sony’s 2022 release list.
The broad deal, running through Sony’s 2026 theatrical slate, also calls for Sony titles to run on Disney’s range of streaming and linear platforms, making it unprecedented in size as it covers Disney Plus, Hulu , FX Networks, ABC, Disney Channels and Freeform. It also includes a significant number of library titles that will be distributed across various outlets.
The deal comes on the heels of Sony’s output deal with Netflix for titles in the lucrative Pay 1 window after the theatrical release. The Disney deal covers subsequent TV windows, meaning the titles will be the first to hit Netflix about nine months after the start of a movie’s theatrical run. For multiple platforms, Disney is picking up the windows previously reserved for ad-supported cable and movie broadcasts. The Netflix and Disney deals also run for the same license term.
Like the Netflix deal, the Disney Pact only covers the US market, despite the streamers’ global reach. The complex deal will likely be worth hundreds of millions of dollars to Sony over the life of the deal, which will run for about six years in total, given the delay time for Disney to access the films. With the combination of Netflix and Disney deals, Sony is expected to secure approximately $ 3 billion in movie licenses over the life of the deals.
The complex deal was conceived by Chuck Saftler, head of operations for ABC, Freeform, FX Networks and Acquisitions for Disney Media and Entertainment Distribution; and Keith Le Goy, president of worldwide distribution and networks for Sony Pictures Entertainment. The deal marks another example of the entertainment industry rewiring its business models to adapt to a new era of television exhibition and distribution.
“This groundbreaking multi-year, cross-platform agreement guarantees the Disney Media and Entertainment Distribution team a tremendous amount of flexibility and a wide range of programming options to leverage Sony’s rich list of award-winning action and family films through our direct-to-consumer services and linear channels, ”said Chuck Saftler, head of operations for ABC, Freeform, FX Networks and Acquisitions for Disney’s Media and Entertainment Distribution. “This is a win for fans, they will benefit from it the ability to access the very best content from two of Hollywood’s most prolific studios across a variety of viewing platforms and experiences. “
Le Goy noted that the deal was “groundbreaking” and reflected the studio’s focus on distributing its films as widely as possible.
“This groundbreaking agreement reaffirms the unique and enduring value of our films to movie buffs and the platforms and networks that serve them,” said Le Goy. “We are delighted to partner with Disney to deliver our titles to their viewers and subscribers. This agreement strengthens an important part of our movie distribution strategy, namely: maximize the value of all our movies by making them available to consumers in all windows with a wide variety of key partners. “