Studios Are Licensing Content to Netflix Again

Major entertainment studios, including Disney and Warner Bros. Discovery, are reversing their policies and increasingly engaging in licensing content to Netflix (NASDAQ: NFLX), departing from their previous reluctance to supply popular shows and movies to the streaming giant. 

Previously, executives had likened licensing to Netflix as akin to “selling nuclear weapons technology” to a rival, a recent report from the New York Times highlights. However, the economic challenges of streaming, where profitability remains elusive for many, have prompted a change in approach.

Related: Disney Takes Full Control of Hulu in $8.61 Billion Deal with Comcast

Studios, facing substantial debt and the need for additional revenue streams, are now embracing licensing arrangements with Netflix to generate much-needed cash.

A still from ‘Dune’ | Warner Bros Discovery

While iconic franchises like Star Wars and Marvel remain off-limits, a range of films and series, such as “Dune” and “Young Sheldon,” are making their way onto the platform. Disney is scheduled to send several shows, including “This Is Us” and “How I Met Your Mother,” to Netflix in the coming months.

Related: Warner Bros Combines HBO Max and Discovery+ with ‘Max’

It’s all about the money, as traditional media companies recognize the potential to monetize existing content. Jeremy Zimmer, CEO of the United Talent Agency, has highlighted the logical progression, noting that studios are leveraging their existing catalog to compete in the streaming landscape.

Information for this story was found via the New York Times, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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