Please ensure Javascript is enabled for purposes of website accessibility

Netflix Grabs Sony's Pay-TV Movie Deal From Starz

By Anders Bylund - Updated Apr 9, 2021 at 10:55AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Most Hollywood studios have started their own streaming services to compete in the evolving media market. Sony picked a well-established partner instead.

Video-streaming veteran Netflix (NFLX 3.29%) just signed a multiyear content deal with Sony (SONY -0.89%) Pictures Entertainment. Starting in 2022, Sony will move its exclusive pay-TV distribution window from longtime partner Starz to Netflix, putting the studio's theatrical releases on Netflix's global streaming platform.

Sony and Netflix already had a streaming agreement for animated content, but this deal expands that partnership to all genres and production types. Titles making their home entertainment premiere in 2022 on Netflix rather than Lions Gate Entertainment (LGF-A -2.57%) (LGF-B -3.41%) subsidiary Starz will include the Brad Pitt thriller Bullet Train, the ensemble-cast action movie Uncharted, and the Reese Witherspoon-produced murder drama Where the Crawdads Sing.

Two businessmen shake hands in front of a wall of TV screens showing various media content.

Image source: Getty Images.

Netflix will also distribute future titles in Sony's established film franchises such as Venom, Jumanji, and Bad Boys, as well as any other new projects that Sony's several studio brands may come up with. The deal also allows licensing rights for Netflix to show some titles from Sony's enormous back catalog.

Furthermore, Netflix gets "first look" privilege to consider developing any direct-to-streaming titles Sony's studios may develop during this agreement. Netflix has committed to releasing an undisclosed minimum number of such productions, which will add exclusive Sony/Netflix content on top of Sony's continuing theatrical productions.

The terms of the deal were not disclosed, but Netflix's payments to Sony should be "record setting" for a pay-TV distribution window, according to Variety's anonymous insider sources.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Netflix, Inc. Stock Quote
Netflix, Inc.
NFLX
$185.88 (3.29%) $5.93
Sony Corporation Stock Quote
Sony Corporation
SONY
$80.95 (-0.89%) $0.73
Lions Gate Entertainment Corp. Stock Quote
Lions Gate Entertainment Corp.
LGF-A
$8.71 (-2.57%) $0.23
Lions Gate Entertainment Corp. Stock Quote
Lions Gate Entertainment Corp.
LGF-B
$8.22 (-3.41%) $0.29

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.