Netflix And Sony Strike Exclusive Movies Deal
Netflix has just scored a deal that should give its movie offerings an epic-sized boost.
The world’s most popular streaming service secured exclusive US rights to Sony Pictures’ newest movies – right after they leave theaters, no less – in an agreement spanning years.
The newly acquired rights to Sony’s movie content will see Netflix viewers being privy to forthcoming films in the popular Jumanji and Spider-Man franchises.
Not only that, Sony’s entertainment division in Japan also gave Netflix priority for buying movies that won’t hit cinemas – and take part in their production, which opens another potential avenue for original films.
The deal’s financial terms are not being disclosed as yet, however, it’s been reported by Bloomberg News that an asking price of US$250 million per year was put on the table by Sony.
In securing the deal, Netflix will be the exclusive streaming home of Sony Pictures titles, which will include box-office-hit film franchises throughout each year.
The agreement will kick off from Sony’s 2022 productions. Previously, Sony had a pay-TV deal with Starz, owned by Lions Gate Entertainment Corp.
Once news of the Netflix-Sony agreement broke, shares of Netflix rose as much as 1.8 per cent to US$556.90 in New York, the company’s highest in over a month. Lions Gate also briefly spiked, rising as high as US$16.28, before retreating.
The intent of the content deal is not to attract millions of new subscribers to Netflix, which already releases nearly 60 original movies a year; it’s more to keep users engaged between new series.
Importantly, Sony is the only major Hollywood studio that isn’t owned by a company that competes with Netflix in streaming.
It’s unknown at this point how long Sony’s movies will show in cinemas before they’re available on Netflix.