Netflix Inks Disney Deal; Stock Up 9%

Netflix

announced on Tuesday that it has signed a deal with Disney

which grants it the rights as exclusive distributor of Disney movies after their first run in theaters. The deal will begin in 2016. The company outbid pay-TV channels for the rights. Currently, Starz holds the rights to Disney movies under a deal that expires in 2015. Terms of the transaction were not disclosed, but Netflix chief content officer Ted Sarandos called the deal “a bold leap forward for Internet television." Disney -ABC Domestic Television president Janice Marinelli called the deal “cutting edge.” At last check, Netflix shares were trading up around 9 percent to $83.15. Disney's shares were flat on the session.