Netflix and Sony Pictures Entertainment have set a significant new licensing deal giving the streaming giant an exclusive window for the studio’s theatrical titles starting in 2022.
The agreement, which replaces an output arrangement with Lionsgate-owned Starz dating back to 2005, provides Netflix with an 18-month exclusive window for Sony films. Multiple bidders had been angling for the rights for some time, with Netflix emerging the winner. Terms were not officially disclosed, but Netflix prevailed with an offer of $1 billion over four years, according to sources familiar with the deal.
The slate will kick off with tentpoles like Morbius, Uncharted, Where the Crawdads Sing and Bullet Train. Two subsequent windows will keep films circulating on Netflix as they reach other platforms across TV and streaming.
In addition to the main film lineup, Netflix will also have a first-look deal for any direct-to-streaming titles Sony is contemplating and has committed to making “a number” of those, per the official release, in reality likely just a couple a year and a minority of the studio’s overall slate.
During Covid-19, the studio opted to sell Tom Hanks movie Greyhound to Apple TV+ while theaters in many territories were closed. Under the new deal, Netflix would get the first opportunity to release such projects. The two companies have done similar deals in recent months for films like the Kevin Hart drama Fatherhood.
The companies have also had an existing relationship via an output deal for Sony Pictures Animation. The new agreement adds all other labels and genres from the studio.
Select library rights are also included. As Sony plans installments of franchises like Spider-Man, Venom, Jumanji and Bad Boys, Netflix will be able to gain rights to prior entries. Another high-profile sequel is a followup to Oscar-winning animated title Spider-Man: Into the Spider-Verse.
The pact comes as rival studios like Universal and Fox are considering a shift soon-to-expire output deals with HBO to instead fill their own streaming pipelines. It is a boost for Netflix, which continues to face investor worries that it has lost key draws like Marvel and Pixar films, Friends and The Office. It also has plenty of upside for Sony, which has no subscription service of its own to feed, certainly from a revenue standpoint.
From deadline.com
