Disney cuts big deal with Netflix

The video subscription service has grabbed the rights to show Disney movies ahead of the pay channels - the first time one of the major studios has bypassed HBO, Starz or Showtime. Under terms of the multi-year deal, Netflix can run Disney movies about seven months after they leave theaters. Netflix will also have access to a catalog of older Disney movies. Terms were not disclosed, but it's likely to be costing Netflix a pretty penny. From MarketBeat:

While Netflix investors are for the moment applauding the company's deal with Disney, the deal likely comes at a price for Netflix, which already faces investor concerns about its programming spending. Financial details weren't released for the Disney deal, but the media giant is a savvy negotiator regarding its properties. ESPN is the most-expensive cable network by far despite commanding a small part of the overall TV audience. Let's see if today's investor enthusiasm stands when the deal's costs begin to show up in Netflix's results.