Netflix and Universal Extend Animated Movie Deal
Netflix is reportedly extending an existing movie distribution deal with Universal Filmed Entertainment Group that now includes content from DreamWorks Animation, which NBCUniversal acquired in 2016. Under terms of the deal, beginning in 2022, Netflix will have access to movie franchises such as Minions and Shrek, and new releases including Puss in Boots: The Last Wish, The Bad Guys, and Minions: The Rise of Gru, four months after their availability on the Peacock streaming service.
The NPD Take:
- Universal is covering the bases by spreading out distribution partners in the middle of the Pay 1 window between Netflix with animated content, and Amazon for all other theatrical releases.
- Netflix continues to lean into acquired theatrical content to bolster its content offerings as the streaming wars heat up.
ESPN+ subscriptions will cost more
For the second time in less than a year, the price of ESPN+ is increasing. Starting on August 13, an annual subscription will rise $10 to $69.99 per year, and the monthly plan will increase $1 to $6.99 per month. The price hike comes after Disney announced a plethora of new sports rights deals, including one with the NHL to make 75 regular-season games exclusive to ESPN+ and an exclusive package with the All-England Lawn Tennis Club for Wimbledon live matches and replays, as well as LaLiga soccer and PGA golf. The price of the Disney Bundle, which includes ESPN+, Disney+ and Hulu will remain at $13.99/month.
The NPD Take:
- Disney is banking on its recent exclusive sports deals to bolster ESPN+ content and justify the cost hike of its standalone channel. For some, this value add will be worthwhile.
- Disney clearly wants its subscribers to go for the value proposition by forcing them to opt for annual plans and bundles over a standalone service. Whether subscribers stay or jump ship remains to be seen.
Redbox Free Live TV now has 100 channels
Redbox’s free, ad-supported streaming television (FAST) service has now reached 100 linear channels. Redbox Free Live TV officially launched with nearly 30 channels in February 2020 and has since added new free VOD content from partners including Shout! Factory, Legendary Television, Magnolia Pictures, and Relativity Media. Redbox is raising capital to invest in innovation and accelerate its digital transformation and wants to grow revenue through streaming partnerships with Netflix and Hulu along with a kiosk maintenance business that partners with Amazon's pick-up lockers.
The NPD Take:
- While Redbox has expanded its linear channel offering for its streaming service, it would also help increase market share by offering exclusive and engaging content that differentiates from other free services like Pluto TV, Vudu, Tubi and Xumo.
- The challenge still exists to find more ways to migrate it’s 40 million customers to move from disc rentals to its streaming platform amid an already crowded landscape.