Netflix and Sony Pictures Entertainment (SPE) have finalized a global Pay-1 licensing agreement for Sony films. This deal, reportedly valued at over $7 billion, allows Netflix to stream SPE's movies worldwide after their theatrical and home entertainment releases. The agreement represents a significant increase in SPE's theatrical output value compared to its prior 2021 Netflix Pay-1 agreement.
Key Deal Aspects
- A crucial element of the new pact is the consolidation of overseas Pay-1 rights for Sony movies, which were previously distributed among numerous international partners.
- This global agreement expands upon a previous domestic and partial offshore Pay-1 deal between the two companies, established in 2022 for $2.5 billion over five years.
- The specific financial terms of the current deal were not officially disclosed by Netflix or Sony.
- The new global Pay-1 arrangement will be implemented incrementally, starting later this year, achieving full worldwide availability on Netflix by early 2029 and extending through 2032.
- Upcoming SPE films slated for release under this deal include The Nightingale (starring Dakota and Elle Fanning), Sony Pictures Animation’s Buds, Nintendo’s live-action The Legend of Zelda, Spider-Man: Beyond the Spider-Verse, and Sam Mendes’ planned quartet of Beatles films.
Executive Statements
Lauren Smith, VP Licensing and Programming Strategy at Netflix, commented, "Our members all over the world love movies and giving them exclusive access to Sony’s much loved films adds incredible value to their subscriptions." She noted the past popularity of Sony's franchises and originals with U.S. audiences and expressed enthusiasm for expanding this offering globally.
Paul Littmann, EVP of Global Distribution, Sony Pictures Television, stated, "Our partnership with Netflix has always been incredibly valuable." He added that this new Pay-1 deal advances the partnership and underscores the enduring appeal of Sony's theatrical releases to Netflix's global audience, further highlighting Sony's independent standing and ability to create opportunities for its creative stakeholders, consumers, and partners.