Walt Disney Company (NYSE: DIS) and From Sony Group Corporation (NYSE: SONY) Sony Pictures Entertainment said they have entered into a multi-year content licensing agreement that gives Disney US streaming and television rights to “Spider-Man” and other upcoming Sony movies after their initial runs on Netflix Inc. (NASDAQ: NFLX).
What happened: The deal covers Sony’s theatrical releases from 2022 to 2026 and will start after the Pay One TV window for each movie. Disney has also acquired the rights to Sony’s library of older films, including “Jumanji” and “Hotel Transylvania”. Financial terms of the deal have not been disclosed.
The agreement gives Disney-controlled Hulu access to a significant number of library titles starting in June. Sony releases will also be featured on Disney’s ABC, Disney Channels, Freeform, FX and National Geographic channels.
See also: Where Walt Disney stands with analysts
Why it matters: The deal gives Disney programming potential across all of its platforms and makes it prime destinations for a robust collection of “Spider-Man” movies.
As the deal involves new Sony movies, Disney will be able to offer Marvel movies such as “Morbius”, Brad Pitt thriller “Bullet Train” and the “Venom” series after they first run on Netflix.
Earlier this month, Netflix reached a deal for exclusive US streaming rights to Sony’s theatrical releases during the Pay One period between a theatrical release and a DVD / Blu-ray premiere.
Disney +, the exclusive streaming home for Disney, Pixar, Marvel, Star Wars and National Geographic, is already home to the rest of the blockbuster Marvel movie franchise.
Online streaming services are in huge demand due to theaters closing down and people forced to stay at home due to lockdowns caused by the coronavirus. Subscription video-on-demand platforms, including Disney + and Netflix, now pride themselves on having millions of subscribers worldwide.
Price actionDisney shares closed nearly 0.2% higher during Wednesday’s regular trading session at $ 183.11 and rose further 0.3% in the after-hours session to $ 183.67.
Sony stock closed nearly 0.2% lower at $ 108.44 in the regular trading session, but rose nearly 1% to $ 109.50 in the after-hours session.
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