Netflix (NASDAQ:NFLX) has fired the next shot in the online video streaming wars; the company announced that, starting in September, it will become the exclusive pay TV host of the latest films from Disney (NYSE:DIS) , as well as the media giant’s Marvel, Lucas Films, and Pixar subsidiaries.
Netflix made the announcement alongside the reveal of its new summer lineup, which also includes Jurassic Park, Academy Award Best Picture winner Spotlight, The Big Short, Back to The Future, and Lethal Weapon.
Netflix becoming the exclusive streamer of Disney films is obviously a serious blow to its industry rivals Hulu and Amazon (NASDAQ:AMZN) Prime Video, but it isn’t exactly the first sign of a partnership between the two companies. The video streaming giant has previously teamed up with Marvel for its smash-hit originals Daredevil and Jessica Jones.
The agreement, which seems like an obviously solid bit of business by Netflix, is more of eye-raiser for Disney. The media conglomerate owes much of its slumping revenue and subscriber growth to “cord-cutting” options like Netflix.
(Also Read: Why Cable Companies Should Partner With Netflix)
Disney’s main issue here is that its television subscribers are ditching their cable subscriptions for online pay TV accounts. Leasing out its movies to Netflix isn’t exactly a full-blown partnership, but it is perhaps the first steps in Disney’s realization that it will have to work with Netflix if it wants to survive.
In the meantime, Netflix users will be happy to have new Disney options available, and die-hard fans of Disney end up as Netflix’s newest customers.
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