Netflix has just finalized a deal with Disney that gives the streaming service exclusive rights to show Walt Disney Co. movies in as little as seven months after their theatrical release.
While new Disney films won’t be available on Netflix until 2016, older films and direct-to-video releases are already starting to filter in. Analysts are wondering, however, whether the deal – which could cost between $300 to 500 million annually – is worth it for the streaming service.
Netflix has already said they won’t increase their prices, but that they are looking to boost subscriber numbers in order to offset the cost of the Disney deal. In order to get 60 to 90 million new subscribers, Netflix will have to rely heavily on new programming and exclusive deals they are working on for 2013.
For now, we’ll have to wait and see how well Disney’s content performs for the streaming service.