Walt Disney Company (NYSE: DIS) and Sony Group Corporation (NYSE: SONY) Sony Pictures Entertainment says it has a multi-year content licensing agreement that will grant Disney’s U.S. broadcasting and television rights to “Spider-Man” and other upcoming Sony movies after initial releases on Netflix Inc. (NASDAQ: NFLX).
What happened: The deal covers Sony’s film releases between 2022 and 2026 and begins for each film, following the Pay One TV window. Disney has also secured the rights to the Sony library of older movies, including “Jumanji” and “Hotel Transilvania.” The financial terms of the transaction were not disclosed.
The deal will give Disney-controlled Hulu access to a significant number of library titles starting in June. Sony launches will also be seen on Disney’s ABC, Disney Channel, Freeform, FX and National Geographic.
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Why does it matter: The deal offers Disney’s programming potential on all of its platforms and makes them key destinations for a robust “Spider-Man” movie collection.
As the deal covers new Sony movies, Disney will be able to offer Marvel movies such as “Morbius”, Brad Pitt’s thriller “Bullet Train” and the “Venom” series, after their initial releases on Netflix.
Earlier this month, Netflix reached an agreement for exclusive streaming rights in the US to Sony’s movie releases in the Pay One period between the movie’s release and the DVD / Blu-ray premiere.
Disney +, the exclusive streaming house for Disney, Pixar, Marvel, Star Wars and National Geographic, is already hosting the rest of the blockbuster Marvel movie franchise.
Online streaming services have been in huge demand due to the closure of cinemas and the fact that people have been forced to stay home due to coronavirus-induced blockages. On-demand video platforms, including Disney + and Netflix, now boast millions of subscribers globally.
Price action: Disney shares closed nearly 0.2% higher in Wednesday’s regular trading session at $ 183.11 and rose 0.3% in the after-hours session to $ 183.67.
Sony shares closed nearly 0.2% lower in the regular trading session at $ 108.44, but rose nearly 1% in the after-hours session to $ 109.50.
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