Sony Pictures and Netflix do big business
Netflix is acting like a sleeping giant that has awakened to take over Hollywood. Not only have they been announced as winners of the Warner Bros. bidding war (despite Paramount’s attempts to interfere), but Deadline now reports that the streaming company has just signed a Pay-1 global deal with Sony for an industry first. This historic deal will see Sony give exclusive streaming rights to Netflix after their films close on their full theatrical and entertainment windows. The agreement was closed at over a whopping $7 billion.
Deadline made sure to note, “The big deal here is the overseas portion of the pay-1 deal. Sony movies will no longer be split up among myriad parties in their offshore pay-1 window.”
While this deal is certainly a game-changer of sorts, it is not as unexpected as the Warner Bros. purchase. Sony movies such as Anyone But You and It Ends With Us have consistently made the Top 10 Most Watched Films on Netflix at any given moment. Plus, Netflix’s partnership with Sony on the animated feature K-Pop Demon Hunters saw immense success at half a billion views on the service, and it was also its first No. 1 box office hit (with $19 million) in theaters.
This breakthrough arrangement will start to take effect gradually this year as each global territory rights are made available and the full worldwide availability on Netflix is likely to be fully realized in early 2029, and continuing through 2032.
Netflix flashes cash for WB
While Paramount is posturing with their hostile takeover bids, Netflix recently responded by prepping an all-cash offer for Warner Bros. Under the original agreement, Warner Bros. Discovery shareholders were set to receive $23.25 in cash and $4.50 in Netflix common stock for each share of WBD outstanding at the time of closing. However, since news of the deal first broke last month, Netflix’s stock has fallen by more than 12%, complicating the stock-heavy portion of the offer. In response, the shift to an all-cash proposal appears to have reassured investors, with Netflix shares ticking up slightly following the news.
