Netflix Will Be Exclusive Home For Disney, Pixar Movies

(RTTNews) - Netflix Inc. (NFLX) and movie studio Disney (DIS) are finally taking their deal that was announced in 2012 to the next level. The online movie rental service will become the exclusive U.S. pay-TV home of the latest films from Disney, Marvel, Lucasfilm and Pixar.

Ted Sarandos, Netflix's head of content, said in a blog post, "From September onwards, Netflix will become the exclusive U.S. pay TV home of the latest films from Disney, Marvel, Lucasfilm and Pixar."

Netflix did not provide names of the specific films, but the agreement will allow it to stream movies, including "Jungle Book" and "Captain America: Civil War" among the 2016 theatrical releases.

Though Netflix and Disney had signed the agreement four year ago, it is coming into effect only this year. The deal is expected to boost Netflix's subscriber base. It will also give Netflix a competitive advantage over other streaming services like Amazon Prime and Hulu.

Netflix added 6.74 million subscribers globally in its recent first quarter, to end the quarter with 81.5 million subscribers. However, the company was only able to add 2.23 million customers in the U.S. during the quarter, which was trumped by 4.51 million international subscriber additions.

The video-streaming service provider now focuses on international expansion, as it faces strong competition in the U.S.

Meanwhile, Disney has enjoyed a strong box office success this year with "Zootopia," The Jungle Book" and "Captain America: Civil War".

The success of these films follows the strength of "Star Wars: The Force Awakens," which grossed over $2 billion globally and was the top-grossing film of last year.

Netflix already has a deal with Marvel for major Marvel shows like "Daredevil" and "Jessica Jones".