Walt Disney Company DIS and Sony Group Corporation’s SONY Sony Pictures Entertainment said they have entered into a multi-year content licensing deal that will give Disney U.S. streaming and television rights for “Spider-Man” and other upcoming Sony movies after their initial runs on Netflix Inc. NFLX.
What Happened: The deal covers Sony’s theatrical releases from 2022 to 2026 and begins for each film following the Pay One TV window. Disney has also secured rights to Sony’s library of older movies, including "Jumanji" and "Hotel Transylvania." The financial terms of the deal were not disclosed.
The agreement will provide Disney-controlled Hulu access to a significant number of library titles starting in June. Sony releases will also be seen 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 gives Disney programming potential across its platforms and makes them key destinations for a robust collection of “Spider-Man” films.
As the deal covers new Sony films, Disney will be able to offer Marvel Movies such as “Morbius,” Brad Pitt thriller "Bullet Train” and the “Venom” series, after their initial runs on Netflix.
Earlier this month, Netflix reached a deal for exclusive U.S. streaming rights to Sony’s theatrical releases during the Pay One period between a cinema 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 blockbuster Marvel-movie franchise.
Online streaming services have seen huge demand due to the closure of theaters and people being forced to stay at home due to coronavirus-induced lockdowns. Subscription video-on-demand platforms, including Disney+ and Netflix, now boast of having millions of subscribers globally.
See also: How to Buy Disney Stock
Price Action: Disney shares closed almost 0.2% higher in Wednesday’s regular trading session at $183.11 and further rose 0.3% in the after-hours session to $183.67.
Sony shares closed almost 0.2% lower in the regular trading session at $108.44, but rose almost 1% in the after-hours session to $109.50.
Read Next: Netflix Staring At A Big Customer Churn, Deloitte Report Finds: What You Should Know
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