In the streaming wars, Sony becomes a supplier for Netflix
At a time when almost every other studio wants to be a Netflix competitor, Sony Pictures offers decided to become one of its best suppliers.
Culver City-based Sony has agreed upon a multiyear deal to produce movies on Netflix once they hit theaters and home video, the companies said Thursday night.
The agreement replaces Sony’s prior pay-TV pact with premium cable network Starz, that is owned by Lionsgate. Starz had been the exclusive premium cable home for Sony movies for more than a decade.
The deal begins with Sony’s 2022 lineup and will stretch through 2026. It will include the upcoming produces “Morbius, ” “Where the particular Crawdads Sing” and “Bullet Train, ” followed by upcoming installments of series including “Venom, ” “Spider-Man, ” “Jumanji” and “Bad Kids. ”
In an essential part of the new arrangement, Netflix will get right of very first refusal to show Sony films that bypass theaters and go straight to streaming. Those films will be in addition to the 15 to 20 pictures Sony releases in theaters annually. The deal represents a boost to Netflix’s burgeoning film business, which plans to release 70 original movies this year.
Financial conditions were not revealed. In the past, conventional output deals generated hundreds of millions of dollars a year in revenue for film companies. Premium cable channels have long relied on a constant stream of blockbuster Hollywood movies to keep subscribers engaged.
“This fascinating agreement further demonstrates the importance of [Sony’s] happy to our distribution partners, ” said Keith Le Goy, president of worldwide submission and networks at Sony Pictures Entertainment, in a declaration.
The particular Netflix deal highlights Sony’s unusual position in Showmanship as the only major facilities without an affiliated streaming service at a time when movie studios are making more articles for their own direct-to-consumer outlets.
Walt Disney Co. is funneling movies to Disney+, while AT& T-owned Warner Bros. is using its film result to grow sister streamer HBO Max. Paramount Pictures proprietor ViacomCBS rebranded CBS Most of Access as Paramount+ last month.
Comcast Corp. ‘s NBCUniversal last year launched streaming service Peacock, though Universal Photos movies still go to HBO for their pay-TV window that will comes after their home video debut. That deal runs through 2022 . The company’s Illumination Amusement animated movies go to Netflix under a similar pact. Comcast has considered moving its movies to Peacock through HBO and Netflix to boost the streamer, according to Bloomberg .
But , whilst other entertainment companies create in-house streaming businesses, Sony Pictures, owned by Tokyo-based electronics giant Sony Corp., has taken the path of “arms dealer” in the streaming wars.
While theaters were closed during the COVID-19 pandemic, the company sold Seth Rogen’s “American Pickle” to HBO Max and the Mary Hanks-starring “Greyhound” to Apple company TV+. The company has help back big movies until the reopening of theaters.
Sony’s Netflix offer builds the Los Gatos, Calif. -based streaming service’s preexisting output deal with Sony Pictures Animation, the Sony label known for “Spider-Man: Into the Spider-Verse” and the “Cloudy With a Chance of Meatballs” franchise. Sony also previously agreed to work together with Netflix on a film adaptation of the stage play version of “Matilda. ”
Moments staff writer Meg James contributed to this report.