Disney Inks Film Deal WIth Netflix
On Tuesday Walt Disney gave Netflix, the big subscription service, a shot in the arm. It inked an executive deal for the pay TV window. News of the agreement with Disney sent Netflix's
stock up nearly 11% to $84.35 in midday trading.
Beginning in 2016, Netflix customers can watch movies from Disney, Walt Disney Animation Studios, Pixar Animation Studios, Marvel Studios and Disneynature as soon as they are made available for pay TV.
The programming pact includes all video electronic devices -- television, tablets, computers and mobile phones. Under a multiyear pact, Netflix will also gain access to major animated films from the Disney library, such as "Dumbo" and "Alice In Wonderland."
In addition to getting first crack at Disney animated
theatrical movies, Disney's direct-to-video films -- a part of the deal -- will be available on Netflix in 2013.
Almost a year ago, Netflix lost Disney films and other content when its deal with pay TV site Starz expired. A deal with Disney is considered crucial, according to various analysts, given the high volume of kids TV-film viewing on Netflix. It's also why Netflix recently did a deal with DreamWorks Animation.
The exclusive pay TV move with Disney gives Netflix a step up against pay TV competitors such as HBO, Showtime and Starz.
Financial terms of the Disney-Netflix deal were not disclosed.