Following today’s announcement that the Disney Movie Club will be shutting down, it has now been revealed by TheWrap that Sony Entertainment will be taking over Disney’s home video business via a licensing model.
What’s Happening:
- As part of this new agreement, Sony will market, sell and distribute Disney’s new releases plus catalog titles on physical (including 4K Ultra HD, Blu-ray and DVD) to consumers through retailers and distributors in the U.S. and Canada.
- Disney will still regularly evaluate the go-to-market approach as the home entertainment business and the industry continue to rapidly evolve alongside consumer behavior.
- The agreement with Sony allows Disney to continue to offer films and TV shows via physical retailers/distributors and serve the customers in an efficient manner.
- Disney’s home video business has been a huge part of the company since it was introduced in the mid-1980s under former CEO Michael Eisner.
- The move to a licensing agreement with Sony comes at a time with a lack of retailer support for physical media (for example, Best Buy recently stopped selling physical media altogether) and somewhat dwindling sales numbers.
- TheWrap notes that there is a possibility of more Disney catalog titles getting the 4K Ultra HD remastered treatment, as Sony was the one who developed the technology in the first place.
- As noted, this news comes the same day as Disney Movie Club announced its closure after 23 years of operation.