Netflix shares jumped 14 percent on the news, as investors saw the Disney deal as an important endorsement of the DVD rental and streaming service, which has struggled with slowing subscriber growth and higher costs for content distribution. Liberty Media Corp, whose Starz group now distributes Disney movies on TV, fell almost 5 percent.
Disney is the major company that has chosen Netflix instead of a cable network. Some worry that Netflix paid to much for the rights to have Disney movies, but I guess we will have to just wait and see. Disney movies will be available for streaming on Netflix beginning in 2016.