Netflix (NFLX) has signed a multi-year partnership with Sony Pictures Entertainment, a Sony division, in which the Netflix will screen Sony’s films, The Wall Street Journal reported. Sony Pictures has given the streaming service five years of rights to show its movies starting in 2022. Sony has agreed to distribute films exclusively to Netflix, according to the terms of the agreement. The Netflix did not disclose how many films and how much the contract was.
Netflix releases after their theatrical debut, such as Spider-Man films, alternate adaptations of MCU movies, and films based on Sony’s rights to characters, such as Morbius and Venom, are available. Sony Pictures Entertainment will also be able to display older films on Netflix.
According to WSJ sources familiar with the terms of the deal, Netflix will pay several hundred million dollars annually for the rights to air the films. The exact amount will depend on the box office revenue the films generate in cinemas.
It was important for Netflix (NFLX) to gain access to movies from the Marvel Cinematic Universe, writes WSJ. With Marvel’s new content being distributed by rival streaming service Disney Plus, the Netflix lost access to screening rights for movies and TV shows. Netflix film production is going on for several years, but it still needs the content created by other studios.
Some new streaming services threaten Netflix, including Disney+, HBO Max, Peacock and AT&T. Now that Netflix has begun offering its streaming service to its partners, these companies are increasingly choosing to provide their content.
A total of 37 million subscribers will have signed up for the paid streaming service by 2020, the Netflix claims. Over the last year, 203.7 million people viewed Netflix content paid by subscription around the world.
Last trading session, Netflix (NFLX) closed at $554.58, up 1.39%. The stock registered a trading volume of 4.3 million shares, less than the average daily trading volume for the last 50 days of 3.77 million shares. Netflix Inc. shares are up 6.31% in the last five days; however, they are up 9.51% in the last month. Over the last three months, the stock price has gained 10.81%, and it has gained 2.56% so far this year. Besides, the Netflix ‘s stock is currently being traded at a P/E ratio of 94.17. Additionally, it has a price to cash flow ratio of 123.12, leading to a price to sales ratio of 9.50.
