Sony Pictures Entertainment is taking over Disney’s physical media business.
Per Variety, Disney and Sony Pictures Entertainment have struck a deal for the latter company to take over the manufacturing, distribution, and marketing of Disney’s DVDs, Blu-ray discs, and other physical media releases.
“As part of the deal, Sony will market, sell and distribute all Disney’s new releases and catalog titles on physical media to consumers through retailers and distributors in the U.S. and Canada,” Variety’s article states.
Disney will continue to own and control its digital media, which includes streaming releases and premium video-on-demand.
While it’s currently unknown if Sony and Disney’s deal will result in layoffs, Variety also notes, “[Disney] is expected to conduct an internal assessment across all business functions that support physical entertainment amid the transition to Sony, according to sources familiar with the licensing agreement. According to Disney, the licensing model allows the studio to continue to offer films and TV shows through physical retailers and to respond to consumer demand more efficiently. The company said the shift is consistent with strategies it’s implemented companywide, as well as transitions in other markets.”
The Disney Movie Club is reportedly coming to an end
The Digital Bits first reported the news of Disney and Sony’s deal. According to the website, the agreement between the two studios means that the Disney Movie Club — a subscription-style service that offers users various physical media-related offers — is shutting down.
“We’ve enjoyed serving you for the last 23 years, but consumer behavior and viewing preferences continue to evolve, so we have made the tough decision to close Disney Movie Club,” an official statement regarding the Disney Movie Club reads, via The Wrap.
According to The Wrap, Disney Movie Club patrons have until May 20, 2024, to place orders before the service is officially shut down on July 20, 2024.
