Disney Teams Up with Sony for DVD and Blu-ray Distribution
Disney has completed a licensing deal with Sony, entrusting the latter's home entertainment division with the responsibility for Disney's DVD and Blu-ray releases, including the production of all physical media. This agreement comes as the physical disc industry continues to decline, highlighted by Netflix's recent shutdown of its disc-by-mail service and a persistent decrease in disc sales. The Digital Entertainment Group's (DEG) 2023 report observed a 17% rise in overall entertainment revenue, driven by strong movie title demand, despite a 25% drop in disc sales and rentals, totaling nearly $1.6 billion.
Reported initially by The Digital Bits, this partnership establishes a licensing model where Sony will oversee the marketing, sales, and distribution of Disney's new and existing titles on DVD, Blu-ray, and 4K Ultra Blu Ray across the U.S. and Canada.
As Disney shifts focus towards enhancing the profitability of its Disney+ streaming service, introduced in November 2019, it navigates the changing landscape of home entertainment. Sony, meanwhile, adopts a unique position by concentrating on specific segments like Crunchyroll, steering clear of the saturated general-entertainment streaming battle.
Even with the waning physical disc market, there remains a dedicated audience for high-definition formats such as 4K Ultra DVD, prized for their unparalleled film quality. The upcoming releases under this new partnership will be highly anticipated.
