Being an avid Disney movie fan, I was pleasantly surprised when I learned that Disney has now made a deal with Netflix. The deal consists of an agreement between the two companies that Netflix will be able to stream new Disney releases beginning in 2016. As of now, Disney has a contract with Starz until 2016 and that deal must expire first before the new Netflix deal can take place. Library titles such as Dumbo and Pocahontas will become available immediately. New releases will be streamed once the deal is completed. The details of the financial agreement were not released, but it is estimated that Disney is going to make $300,000,000 annually from this contract whereas HBO, Starz and Showtime have only paid about $20,000,000 for those showing rights. Starz, however, is claiming that they decided to part with Disney, not the other way around.
My question to you is how do you think this new deal between Netflix and Disney is going to affect the entertainment industry? Are deals like these going to hurt television broadcasting and potentially begin to end that industry? Do you think a major company like Disney moving into digital streaming will set a trend that others will follow? What are other impacts of deals like these? Give me your thoughts!
Here’s the link: http://mediadecoder.blogs.nytimes.com/2012/12/04/netflix-bests-starz-in-bid-for-disney-movies/?ref=technology