Netflix Strikes a Deal with Disney to take effect in 2016


The newly struck deal between Netflix and Disney will come into effect in 2016. According to the deal, Netflix users will able to view new films from Pixar animations and Marvel.

Disney is also going to buy the “Star Wars” franchise from the Lucas Films.  With that being said, the first Star Wars episode would be released before the deal is closed.

Following the announcement of the new deal, shares of Netflix.Inc increased by 14%.

US subscription TV channel, “Starz” currently holds the first-run rights to releases from Sony studio that includes releases by Tri-Star and Columbia.

Netflix has not made the cost of the Disney rights public. Having said that, analysts have expressed their concern over whether Netflix can afford the cost of the investment.

Netflix has also acquired the rights to future productions by the Dreamworks productions. The deal will take effect in 2013.

The lion’s share of Netflix’s subscribers watches their movies on PS 3. So, performance of the Sony device in future will also play a crucial role for Netflix.


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