Walt Disney Company (NYSE: DIS) and Sony Group Corporation se (NYSE: SONY) Sony Pictures Entertainment has announced that it has entered into a multi-year content license agreement that will grant Disney US streaming and television rights to “Spider-Man” and other upcoming Sony movies after their initial runs Netflix Inc. (NASDAQ: NFLX).
What happened: The deal covers Sony’s theatrical broadcasts from 2022 to 2026 and starts for each film following the Pay One TV window. Disney has also acquired rights to Sony’s library of older movies, including “Jumanji” and “Hotel Transylvania.” The financial terms of the transaction have not been disclosed.
The deal gives Disney-controlled Hulu access to a significant number of library titles starting in June. Sony releases will also be shown on Disney’s ABC, Disney Channels, Freeform, FX and National Geographic channels.
See also: Where Walt Disney stands with analysts
Why it matters: The deal offers Disney programming potential on all platforms and makes it the top destination for a robust collection of ‘Spider-Man’ movies.
As the deal covers new Sony movies, Disney could offer Marvel Movies like “Morbius,” the Brad Pitt thriller “Bullet Train” and the “Venom” series, after their first runs on Netflix.
Earlier this month, Netflix reached an agreement for exclusive U.S. streaming rights to Sony’s theater releases during the Pay One period between a movie release and a DVD / Blu-ray premiere.
Disney +, the exclusive streaming home for Disney, Pixar, Marvel, Star Wars and National Geographic, is already home to the rest of the live Marvel movie franchise.
Online streaming services have seen a huge demand due to the closure of theaters and people being forced to stay home due to coronavirus-induced connections. Video-on-demand subscription platforms, including Disney + and Netflix, now boast millions of subscribers worldwide.
Price action: Disney shares closed nearly 0.2% higher at $ 183.11 in Wednesday’s regular trading session and rose 0.3% in the after-hours session to $ 183.67.
Sony shares closed nearly 0.2% lower at $ 108.44 in the normal trading session, but rose nearly 1% to $ 109.50 in the after-hours.
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