Shares in The Walt Disney Co. went up Wednesday, the day after the entertainment and media conglomerate announced a new deal to stream live action and animated feature films exclusively through Netflix.
Shares in the Burbank-based company closed at $49.59 on Wednesday, an increase of $0.29 or less than one percent, from the day before. Shares in Netflix Inc., based in Los Gatos, dropped Wednesday to $83.37, or $3.28 from the day before.
The deal covers films from Disney, Walt Disney Animation Studios, Pixar Animation Studios, Marvel Studios and Disneynature beginning in 2016. Content can be viewed instantly in the pay TV window on multiple platforms, including television, tablets, computers and mobile phones.
Financial terms of the deal were not disclosed.
The agreement takes the relationship between Disney and Netflix to the next level, said Janice Marinelli, president of Disney-ABC Domestic Television.
“Netflix continues to meet the demands of its subscribers in today's rapidly evolving digital landscape, and we are delighted that they will have much earlier access to our top-quality and entertaining slate,” Marinelli said in a prepared statement.