Disney is running into some trouble with previous licensing deals which would give other networks and streaming services rights to Disney films that would then need to be removed from Disney+. In an effort to maintain rights to some of their films, Disney has reportedly made a deal with Starz.
The deal would allow Disney to keep their films on Disney+ in exchange for ads for Starz being placed on Disney+ and ESPN+, according to a source for The Verge who first reported on this news. According to that source, the ads will show up after the user signs up for either of the Disney owned streaming services.
“It’s clear that, from a library perspective, while there’s certainly a lot of volume, the recent studio slate will not fully be available at any one time because of the existing deals and it would take time for those rights, ultimately, to revert back to us,” Disney’s CEO Iger said.
A Disney spokesperson confirmed the report and shared that it’s part of a revised licensing deal between Disney and Starz. That person also confirmed that after the initial ad, there will not be ads placed within the services after sign-in.
This is just one licensing deal made before plans for Disney+ were made, which are now causing problems for Disney. The company had deals with Starz and Netflix, among others, that would give the networks and streaming services rights to Disney films for a certain period of time. Disney+ has been promoted as the platform to watch the full library of Disney films. The company is now working on regaining those rights to ensure subscribers will have access to the best possible collection of films and TV series from Disney.
Did you know we have a YouTube Channel? Every week we have a live Cord Cutting Q&A, and weekly Cord Cutting recap shows exclusively on our YouTube Channel!