Contract to Sony
Netflix shares rose 1.4% on Thursday after the company announced a long-term contract from Sony Pictures Entertainment that will see both older films from the movie studio and 2022 releases appear on its streaming platform, after being distributed in theatres.
Netflix has signed a contract with Sony Pictures Entertainment (SNE) for the right to exclusively stream both older films from the movie studio.
Terms of the deal were not disclosed, but The Wall Street Journal, citing anonymous sources, reported that it would cost Netflix several hundred million dollars annually. Bloomberg previously reported that Sony was demanding up to $250m a year.
Market experts say the Sony Pictures deal with Netflix looks mutually beneficial, given that Sony remains the only traditional Hollywood movie studio without its own streaming service. The World Disney has Disney+, AT&T-owned Warner Bros. (T) has HBO Max, Comcast's Universal Pictures (CMCSA) has Peacock, and ViacomCBS-owned Paramount Pictures (VIAC) has Paramount+.
Netflix has also promised in its latest report that its new content will be released on the platform every week in 2021. The streaming leader has also acquired the rights to several Knives Out sequels in a deal reportedly worth more than $450 million.
Netflix shares rise
Netflix shares, barring a surge in the 20s of January, have been trading in a "corridor" since July.
After a strong rise in the first half of 2020, Netflix shares have risen just 2.6% since the start of 2021, lower than the overall market growth, with the S&P 500 index up 9.1%.