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Netflix has entered a pay-one deal agreement with Sony where it will get licenses to some of the popular movies and animations from Sony Pictures Entertainment.
On Thursday, April 8, OTT streaming giant Netflix Inc (NASDAQ: NFLX) entered an important partnership with Sony Pictures. With this partnership, Netflix secures an exclusive license to stream Sony movies after their theatrical and home entertainment releases.
As part of the partnership, Netflix will get a first look at Sony’s films. The deal also includes some of the popular names like “Uncharted”, “Morbius”, and “Bullet Train”. More importantly, Netflix also gets access to one of the most popular franchises aka Spider-Man. Thus, it will be able to films like the future Spider-Man movies and future Venom. Other big names in the deal include franchises like Bad Boy and Jumanji.
Besides, Netflix has also decided to make a number of these films over the course of the deal. Neither of these two companies has disclosed the term of the deal or the financials involved. During this pandemic over the last year, Sony has reportedly sold multiple state titles to Netflix. This includes Kevin Hart’s “Fatherhood” and animated films like “Wish Dragon” and the “The Mitchells Vs. The Machines”. Netflix global film head Scott Stuber said:
“Sony Pictures is a great partner and we are thrilled to expand our relationship through this forward-thinking agreement. This not only allows us to bring their impressive slate of beloved film franchises and new IP to Netflix in the U.S., but it also establishes a new source of first run films for Netflix movie lovers worldwide.”
Netflix and Sony Pay-One Deal
As per sources familiar with the matter, the deal will have a pay-one window agreement for a record-setting price. The deal will be in a very traditional form wherein Netflix pays for each title based on a sliding scale depending on the title’s domestic and worldwide box office haul. Speaking about the collaboration, Keith Le Goy, SPE’s president of worldwide distribution and networks said:
“Netflix has been a terrific partner as we continue to expand our relationship. At Sony Pictures, we produce some of the biggest blockbusters and the most creative, original films in the industry. This exciting agreement further demonstrates the importance of that content to our distribution partners as they grow their audiences and deliver the very best in entertainment.”
Netflix has seen a strong surge in business owing to the pandemic and lockdowns worldwide. There has been a significant increase in its subscriber base. The Netflix stock (NASDAQ: NFLX) was has surged nearly 65% over the last year. On Thursday closing, the NFLX stock was trading at $554 (+1.39%) with a market cap of $245 billion. Today in the pre-market, NFTX stock is slightly up, trading at $555.70 at the time of writing.