Netflix has entered into a multi-year licensing agreement with Walt Disney Company for the exclusive right to stream the latter’s content to its U.S. subscribers. The financial terms of the deal were not disclosed.
According to the terms, starting 2016, Netflix would be able to stream movies from the Disney Studio and its associated studios instantly after release. Moreover, Netflix would gain access to Disney’s direct-to-video releases starting 2013.
The current deal is a big positive for Netflix and has come at a crucial time. The company lost streaming rights of Disney movies as the Starz deal expired in February 2012. Back in mid 2011, the license renewal talks between Netflix and Starz Entertainment LLC fell through due to non agreement related to financial matters.
Netflix is also boosting its original content portfolio to entice new subscribers in the U.S. and International markets.
