Netflix Signs Deal for Disney Movies
In big news for Netflix (NAS: NFLX) , the entertainment streaming company announced today that it has inked a multiyear licensing deal with Disney (NYS: DIS) that will make Netflix the lone subscription TV service to distribute new Disney films during the "pay TV window" that starts a few months after recently released movies have been opened to sales and rentals. Come 2016, don't look to Showtime, HBO, or other pay channels for new Disney movies during this window. Look to Netflix.
The deal, which will begin in 2016, includes new feature films from Disney, Walt Disney Animation Studios, Pixar, Marvel, and Disneynature. Netflix will also gain access to Disney's film library, bringing a myriad of family- and kid-friendly shows and movies into its arsenal. Disney direct-to-video new releases will furthermore come to Netflix starting in 2013.
"It's a bold leap forward for Internet television and we are incredibly pleased and proud this iconic family brand is teaming with Netflix to make it happen," Netflix Chief Content Officer Ted Sarandos is quoted as saying.
While the deal's financial terms were not disclosed, Netflix's stock soared on the announcement. Shares had jumped nearly 13% late in Tuesday's trading session.
The article Netflix Signs Deal for Disney Movies originally appeared on Fool.com.Dan Carroll has no positions in the stocks mentioned above. The Motley Fool owns shares of Walt Disney and Netflix. Motley Fool newsletter services recommend Walt Disney and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.