Why Sony Sold Streaming Rights For Tom Hanks Movie To Apple Instead Of Waiting Out The Pandemic

Sony Corporation SNE has sold the streaming rights for its upcoming movie "Greyhound" to Apple Inc. AAPL, CNBC reported on Tuesday.

The movie, starring Tom Hanks, was supposed to be released during the Father's Day weekend on June 19 before the novel coronavirus (COVID-19) pandemic delayed the theater launch of all productions.

Greyhound will now be released directly on Apple TV+ following Sony's 15-year streaming rights deal with Apple, CNBC noted.

Sony's decision is in contrast with a majority of other producers who have simply chosen to delay the launch of their major films.

People familiar with the matter told CNBC that the Japanese conglomerate was worried "that the film wouldn't be able to find a slot among the superhero films and franchises that had been delayed from the summer."

Apple has shelled $70 million for the deal, according to CNBC. Sony was also in talks with Netflix Inc. NFLX, the sources told CNBC, but wasn't willing to pay as much as the Cupertino-based consumer electronics giant.

Price Action

Sony's shares closed 1.6% lower at $63.05 on Tuesday and traded another 0.3% lower at $62.88 in the after-hours session.

Apple shares closed 0.6% lower at $313.14 in the regular session the same day but added 0.5% in the after-hours at $314.54.