Disney Has The Ability To Get Around Netflix’s “Pay 2” Contract For Disney+
Recently it came to light that Netflix still holds the rights to the “Pay 2” window for Disney movies released between between 2016 and 2018 including Infinity War, Star Wars: The Force Awakens and Coco, but these wouldn’t become available to Netflix until after 2025.
During Disney’s quarterly results investors call, CEO Bob Iger was asked “What happens with content in the P2 window? So if you get content from Netflix, does it go back to them? Or do you keep it for forever?”
His reply was:
I don’t want get too specific on that, but there was a window in the Netflix deal that enable us access to some of the films, so it’s the films that we were licensing to them, and again, I don’t want to get more specific than that. But when we did the Netflix deal some — way back, we envisioned, even though it was at that point, far off, the possibility that one day we might want to launch our own service. So we carved out an ability to run some of the films on such a service, and it did pay off.
It was clear that Bob Iger didn’t want to get into the details, he confirmed that the Netflix will get those movies back, but it sounds like Netflix doesn’t have “exclusive” access to some of those movies, so Disney+ could retain the movies as well.
He also confirmed that Disney are trying to buy back rights to their movies and shows, so with nearly 5 years before the “Pay 2” window becomes a reality, when “The Finest Hours” should be the first movie to return to Netflix for a limited period.