Streaming arms race escalating! Netflix (NFLX.US) splashes $7 billion to secure global rights for Sony Pictures.

Netflix (NFLX.US) has acquired the global streaming rights for Sony Group's films after their theatrical release and pay-per-view window ends, bringing under its wing the distribution of works from one of Hollywood's largest studios. The recently announced multi-year agreement expands on the partnership reached by the two companies in 2021. The prior agreement granted Netflix the streaming rights for Sony films in the United States after their theatrical release and online purchase or rental window, as well as in select regions in Germany and Asia. In a joint statement, the two companies announced that as copyright restrictions gradually lift, Sony films will begin to roll out on the Netflix platform globally later this year, with full deployment expected by early 2029. As part of the deal, Netflix will also have access to specific films and TV series from Sony's library, including popular franchises like "Spider-Man" and "Jumanji." According to sources familiar with the matter, the deal is valued at around $7 billion and will run until 2032. As the terms have not been publicly disclosed, the sources requested anonymity. This move strengthens Netflix's theatrical film lineup - if the streaming giant successfully acquires Warner Bros. Discovery's studio business, its library could further expand. Currently, Netflix is in competition with Paramount (PSKY.US), with both parties making competing bids for Warner Bros. In 2024, Netflix expanded its collaboration agreement with Comcast Corporation's NBCUniversal by acquiring streaming rights for live-action films in addition to its existing agreements for DreamWorks Animation and Illumination Entertainment animated films. The two companies announced that starting in 2027, live-action films from Universal Pictures and Focus Features (including franchises like "Fast & Furious" and "Jurassic Park") will be available on Netflix "no later than eight months after their theatrical release." Netflix is set to report its fourth-quarter earnings on January 20. The company had 301.6 million subscribers as of the end of 2024. The prior agreement with Sony also included a commitment to produce original films for the streaming service. If Netflix successfully acquires Warner Bros., it will have streaming rights for films from Sony, Universal, Warner Bros., and independent studio A24 after their theatrical release. Currently, A24 has a deal with Warner Bros.' HBOMax streaming service.