Netflix will pay up to obtain the rights to Disney flicks during the coveted pay-TV window

Jeff Baumgartner, Senior Editor

December 4, 2012

2 Min Read
Netflix Swipes Disney Deal From Starz

Netflix Inc. (Nasdaq: NFLX) got some longer-term relevance Tuesday by securing the rights to offer Walt Disney Co. (NYSE: DIS) flicks in the coveted pay-TV window starting in 2016.

Netflix will also start to get access to "high-profile" Disney direct-to-video fare starting next year. The pay-TV part of the agreement, which covers titles from Disney Animation, Pixar and Marvel, essentially seizes those rights from long-time Disney premium programming partner Starz Entertainment LLC .

And forgive Netflix execs if they end up gloating a bit. Starz reportedly wouldn't do a new deal with Netflix in 2011, when the streaming giant offered to pay about $300 million but balked at the idea of creating a premium-level subscription tier around Starz content. (See Did Starz Reject $300M Netflix Offer?)

Netflix and Disney didn't disclose financial terms, but Netflix "could ultimately pay more than $300 million," reports The Los Angeles Times.

Why this matters
Netflix, which is getting pressured by Carl Icahn to sell while the getting is good, will need good content to keep its growth engine stoked. The company has been paying the price for a small set of original series, but Disney is as good a horse as any to have in the streaming stable.

The deal will also put pressure on Starz to generate more popular originals and assemble deals with other leading studios when new distribution deals come available. In a statement, Starz points out it has rights to Disney Studio film titles "into 2017," and that "our decision not to extend the agreement" past that date creates room to invest in Starz's own exclusive, original series for its pay-TV partners.

For more

  • Netflix, Starz on the Outs

  • Netflix Sinks as It Cuts Q4 Subscriber Forecast

  • Icahn: Netflix Sale Has 'Crossed Our Minds'



— Jeff Baumgartner, Site Editor, Light Reading Cable

About the Author(s)

Jeff Baumgartner

Senior Editor, Light Reading

Jeff Baumgartner is a Senior Editor for Light Reading and is responsible for the day-to-day news coverage and analysis of the cable and video sectors. Follow him on X and LinkedIn.

Baumgartner also served as Site Editor for Light Reading Cable from 2007-2013. In between his two stints at Light Reading, he led tech coverage for Multichannel News and was a regular contributor to Broadcasting + Cable. Baumgartner was named to the 2018 class of the Cable TV Pioneers.

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