Netflix Inc, the industry leader in streaming media on demand via the internet world round suffered a severe jolt back in February of this year when its contract with premium US channel, Starz came to an end following multiple failed attempts to renegotiate a deal.
However, nine months following that falling out, Netflix has emerged on the scene once again seemingly better than ever, as the online media provider has struck a deal with Walt Disney Co which will allow the service to stream the iconic company’s first-run movies. The deal includes valuable Disney subsidiaries including Pixar Animation Studios, Walt Disney Animation Studios, Disneynature and Marvel Studios to its subscribers through a pay-TV window.
This is a multi-year licensing deal that is an absolute game changer as it will end the supremacy of other channels and mediums once it becomes active. This is because the latest agreement gives Netflix the sole subscription rights to first-run Disney movies in the US. This will also hurt Starz because at the moment the former Netflix affiliated channel has the license to televise Walt Disney films.
Netflix subscribers will not be able to enjoy the product of this agreement before 2016, the year the deal kicks in. Aside from the aforementioned, no other details of this deal between Netflix and Disney were revealed, but according to analysts’ estimations, the online media provider may have paid over $350 million to Disney for getting the exclusive rights to stream its movies.
Whether Netflix will increase the monthly subscription fee of its unlimited viewing remains uncertain. Only the time will tell, however Netflix’s Chief Content Officer, Ted Sarandos said that currently there are no plans to raise fees.
Source: AllThingsD, ChicagoTribune, Turnto23
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