Netflix and Disney Negotiate Over Streaming Rights

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Netflix wants to dominate the world of online streaming entertainment and content. Currently, Netflix offers a number of hit original series that draw in huge audiences and garner critical acclaim. Netflix’s crop of Marvel Comics live-action series definitely helped the streaming service grow. Now, Netflix is in talks with Disney about retaining streaming rights to both Marvel and Star Wars films.

The current deal between Disney and Netflix expires in 2019. Hence, negotiations are taking place as Netflix wishes to retain the rights and continue offering the wildly-popular films bearing the Marvel and Star Wars name.

Disney owns both Marvel and Star Wars properties. Since Netflix already works with Disney on original Marvel streaming programming, the company has a solid inside track when negotiating with the corporate giant. Netflix, however, isn’t guaranteed an outcome. Disney hardly has interests in showing favoritism if Netflix cannot match the price Disney wants for film rights. Marvel and Star Wars films cost a lot of money to produce. They also sell a lot of tickets and Blu-rays. In short, Disney could get a lot of money for streaming rights from a number of entities.

Of course, Disney would want to sell the rights to a company it trusts. Disney also wants its properties handled well. Advertisements for streaming content further boost and promote the brand in the market. Netflix is strongly positioned to be able to do this thanks to the company’s huge subscription base and standing in the market.

Another factor, however, makes things very difficult for Netflix. Disney launches its own video-on-demand service in 2019. The VOD service intends to feature popular Disney animation and other releases. Marvel Studios and Lucasfilm/Star Wars projects seemingly aren’t part of that mix. Things absolutely could change in the future. Dollars and cents likely motivate all thoughts about implementing changes.

Through running its own VOD service, Disney won’t have to split any money with a third-party. Yes, Disney would have the overhead associated with running a VOD service but those costs should be recouped through the high VOD revenues popular films and franchises bring in.

Still, Disney may not want to burn any bridges with a strategic partner such as Netflix. This is why the two entities remain in talks and Disney hasn’t shut any doors.

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