Popular streaming platform Netflix Inc. has secured exclusive U.S. rights to new movies from Sony Pictures after they leave theaters. In the deal announced on Thursday, a multi-year agreement has been reached by Netflix and Sony, giving the streaming giant upcoming films in the popular “Jumanji” and “Spider-Man” franchises.
The entertainment division of Sony Corp. also gave Netflix another potential pipeline of original films as they have the first chance to buy movies that aren’t headed for theaters and take part in their production. Financial terms of the deal weren’t disclosed, though an earlier report by Bloomberg News stated that Sony was seeking as much as $250 million a year.
The titles from the Japanese media conglomerate, Sony, include some of the most popular film franchises at the box office year in and year out. Netflix will also be the streaming home for “Morbius,” a spinoff of “Spider-Man,” as well as “Where the Crawdads Sing,” an adaptation of the bestselling novel.
The agreement between Netflix and Sony comes into effect with Sony’s 2022 movie slate. Starz, owned by Lions Gate Entertainment Corp., had Sony’s previous pay-TV deal.
After the news published, in New York, shares of Netflix rose as much as 1.8% to $556.90, their highest in more than a month. Lions Gate also briefly spiked in that time frame, rising as high as $16.28, before retreating.
Netflix, which already releases nearly 60 original movies a year, will not see millions of new subscribers due to these titles. But they will be able to keep users entertained in between new series. Netflix previously offered new movies from Walt Disney Co., until the California-based studio decided to keep its movies on Disney+.
Sony is the only major Hollywood studio whose ownership does not lie with a company that competes with Netflix in streaming. Netflix did not include in the announcement how long Sony’s movies will play in theaters before they appear on the streaming platform. Other movie studios have shortened the time between theatre releases and home viewing, but the lag may see an increase hopefully soon when Covid-19 cases fall and theaters are reopened worldwide.
