Netflix signs deal to stream Disney movies

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Thursday, December 06, 2012

Businessweek: Netflix announced an exclusive deal with Disney to stream the movies mere months after they are in theaters, a right normally reserved for HBO or other subscription channels.

The deal marks one of the first times a major Hollywood studio has granted such distribution rights to a streaming video provider. Netflix will also get the right to stream some of Disney's older movies immediately and, beginning next year, will get the rights to stream its direct-to-video releases.

Netflix's streaming service has been criticized for not having a great enough diversity of content, and in recent quarters its subscriber growth has slowed. Clearly the company needs to add to its streaming offerings, said Brett Sappington, a research director at Parks Associates, a consulting company.

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