Disney and Sony have struck a deal for Sony Pictures Entertainment to take over a significant portion of Disney’s home entertainment division, handling the manufacturing, distribution, and marketing of Disney’s DVDs, Blu-ray discs, and other physical media. Sony will market, sell, and distribute all Disney releases and catalog titles in the U.S. and Canada. Disney will retain control of its digital media, such as premium video-on-demand.
The transition to Sony may lead to an internal assessment at Disney, though potential layoffs are uncertain. Disney’s licensing model for physical media aims to address consumer demand more efficiently and is in line with wider company strategies for market transitions.
Physical disc sales have been declining for some time, with no sign of a rebound in the streaming era. Revenue from physical media in the U.S. dropped 28% in the first half of 2023, and it is projected to fall below one million dollars for the first time in 2024. Best Buy has already ceased DVD and Blu-ray sales, following Netflix’s discontinuation of its DVD-by-mail service.
Major retailers, such as Walmart, Amazon, and Redbox, still sell Disney blockbusters, but the industry’s shift towards streaming is undeniable. This deal with Sony marks Disney’s adaptation to the changing market landscape, ensuring its content remains accessible to consumers through varying channels.
