Netflix Secured Huge Disney Deal

Posted on Dec 4 2012 - 10:47pm by Travis

In financial news, Netflix just scored a huge deal with Disney, which will allow them to get access to new Disney releases before any of the other major cable channels. Disney has traditionally run on a seven month window before cable networks can play their films, and this places Netflix ahead of any of those companies, such as HBO. In addition to newer Disney films, Netflix will also get access to older films that will be archived on the movie giant’s site. These movies will be available right now, with viewers having to wait for the newer films. This means that Netflix will be the first and only place to watch Disney’s newest movies. In the past, Netflix has said it wants to be a better version of HBO, and this new deal is shaping up to be just that.

This is not a first for Netflix, who also signed a deal with Dreamworks recently that allows them access to a ton of new content. It used to be thought that movies and media could not make money in the streaming business, but Netflix has shown that this is not the case. Many people are ditching traditional cable to go with streaming services such as Netflix and Amazon, and so more and more movie distributors are looking at these streaming services as the new places to cash in on their films and shows.

Netflix has still said that cable is the king of media, and that they do not intend to try and replace it. In addition, as they grow as a company and keep signing big deals with studios, they may have to hike up their prices in order to sustain their media rights. It may be that the model they are using is unsustainable in the long run, and that their customers may be looking at higher rates in the future. These changes have not worked so well for Netflix in the past so they will need to be careful how they go about adapting to their new acquisitions.

Source: Yahoo