This week, Netflix announced an exclusive content deal with Disney that will bring a stable of movies to its popular streaming service. The deal will include titles from Disney, Pixar, and Marvel. The catch? Domestic subscribers won’t have access to new releases until 2016.
Pundits are split on the high-profile deal. Some have hailed it as a big win for Netflix, and a sign the web service can compete with traditional pay-TV outlets for content deals. Others question the four-year delay for the agreement to go into full effect and its large price tag–one analyst indicated it could cost Netflix roughly $300 million per year. For that price, Netflix would have to boost its subscriber base significantly to make it worth while, according to Albert Fried analyst Rich Tullo, who adds, “It won’t get to the level where it’s going to be economical.” Could Netflix’s capital be better spent on original content? [read]