ONTD

Netflix and Disney announced Tuesday that they have entered into a multi-year licensing deal that will makes Netflix the only U.S. subscription TV service to offer brand new films from Disney.

Starting in 2016, Netflix users will be able to stream first-run Disney movies on their mobile devices, computers and television. The deal also includes Disney's direct-to-video new releases.

What's more, under the terms of the deal, Netflix users can today start watching classic Disney movies like Dumbo, Pocahontas and Alice in Wonderland, among others.

For Netflix, the deal doesn't just give it a leg up over rivals in the streaming space, but also over TV networks like HBO and Showtime, which have traditionally been the ones to land these first-run movie rights from major studios.

Netflix entered a similar content partnership with DreamWorks Animation in 2011, snatching away the movie studio from HBO.

"Disney and Netflix have shared a long and mutually beneficial relationship and this deal will bring to our subscribers, in the first pay TV window, some of the highest-quality, most imaginative family films being made today," said Ted Sarandos, chief content officer at Netflix. "It's a bold leap forward for Internet television and we are incredibly pleased and proud this iconic family brand is teaming with Netflix to make it happen."

The deal comes at a time when Netflix is facing increasing competition from rivals like Amazon Prime, which has ramped up its own movie streaming partnerships in the past year by striking deals with Warner Brothers and Epix. Meanwhile, Netflix has encountered some setbacks as Starz pulled its movies from the service and Epix ended its exclusivity agreement with Netflix.

Netflix stock shot up by as much as 10% following the news.

Source