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Netflix outbids pay TV for rights to Disney movies

Published on NewsOK Modified: December 4, 2012 at 2:01 pm •  Published: December 4, 2012
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Starz currently holds the rights to The Walt Disney Co.'s movies under a deal that expires in 2015. Beginning in 2016, Netflix will get the movies instead. Direct-to-video movies will come to Netflix sooner, as will older movies such as "Dumbo" and "Alice in Wonderland."

In Tuesday's news release, the Los-Gatos, Calif.-based Netflix didn't disclose how much it is paying Disney.

The Disney deal gives Netflix a measure of revenge against Starz, which had been demanding a price that Netflix refused to pay when their licensing agreement expired earlier this year. The Starz rights had included Disney movies, so losing that access had been seen as a blow to Netflix.

The stock price of Liberty Media Corp., Starz' owner, dropped $7.08, or 6.4 percent, to $103.97 in afternoon trading. Shares of Disney, which is based in Burbank, Calif., lost 3 cents to $49.26.