Tuesday, May 27, 2014

It's Distribution, Amigo

As J. Katzenberg says, multiplexes are so ... 1998.

... "Netflix and Sony Pictures Television have reached a multi-year agreement to bring Sony Pictures Animation feature films in the first pay TV window to Netflix members in the U.S., beginning with the hit movies Cloudy with a Chance of Meatballs 2 and The Smurfs 2 in 2014," the three companies said in a joint statement. "Sony and Starz continue their long-term partnership, and Starz remains the exclusive pay TV home of Sony Pictures Entertainment feature titles through 2021." ...

For Netflix, the news is positive, because the company can replace part of the content it lost from its discontinued licensing deal with Starz, the analyst said, adding: "The Sony deal would only add one or two titles per year to its lineup, but gradually increases the company's focus around younger/animated content as they have exclusive access to Pixar, Disney Animation, DreamWorks Animation, and Sony Animation."

That means that Fox's Blue Sky Studios and Universal partner Illumination "are the only other major sources of animation, which are distributed through HBO," Wible said, adding: "We believe the younger demographic is an important element of Netflix's long-term strategy as they condition future generations to use the platform as they mature." ...

Anybody who spends time with teenagers (good luck getting their noses out of their eye phones) understands that the demographic sucks up entertainment on their communication devices, on iPads, on flat screens bolted to the wall. And sometimes, they absorb images from all of those sources at once.

So for Netflix and Sony Pictures Animation, this is likely a good match. SPA has the product, and Netflix has the pipline.

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