MOVIE NEWS – Netflix and Sony Pictures are taking their partnership to the next level with a major Pay-1 licensing agreement that will bring Sony feature films to Netflix worldwide once they’ve completed their full theatrical and home entertainment windows. The deal is set to kick off in the United States in 2027 and expand gradually across other territories. By early 2029, Netflix is expected to hold full global licensing rights for Sony’s post-theatrical slate.
Netflix and Sony Pictures are extending their collaboration in a big way. According to Deadline, the two companies have signed a new Pay-1 licensing agreement that could be valued at around $7 billion. Under this arrangement, Sony feature films will stream on Netflix internationally after completing their full runs in theaters and the home entertainment market, giving Netflix a significant premium pipeline of studio releases.
The deal will begin in the United States in 2027, but the worldwide expansion won’t happen overnight. Instead, the rollout will take place step by step as rights become available in each territory. Netflix is expected to secure full worldwide licensing rights to Sony titles by early 2029, at which point the streamer will effectively become Sony’s global Pay-1 home across markets.
This agreement is also positioned as an extension of the Netflix-Sony partnership first established back in 2021. That earlier deal, launched in 2022 and running through the end of 2026, made Netflix the exclusive U.S. Pay-1 destination for Sony films after their theatrical and home video windows. It was reportedly worth $2.5 billion and also included a first-look arrangement for select direct-to-streaming titles Sony might consider – a structure that ultimately helped Netflix land KPop Demon Hunters, which has since become the platform’s most-watched movie of all time.
Lauren Smith, Netflix’s Vice President of Licensing and Programming Strategy, said the expansion reflects how strongly audiences around the world respond to feature films, and that giving members exclusive access to Sony’s popular catalog adds meaningful value to their subscriptions. She pointed to Sony’s impressive mix of iconic franchises like Spider-Man: Across the Spider-Verse as well as original hits such as Anyone but You, noting that these titles have performed well with U.S. subscribers and will now be extended to a global audience.
On Sony’s side, Paul Littmann, Executive Vice President of Global Distribution at Sony Pictures Television, emphasized that Netflix has been a crucial partner for Sony’s distribution strategy. In his view, the new Pay-1 agreement strengthens that relationship even further and underlines the continued global appeal of Sony’s theatrical releases. He also stressed that Sony’s independent position gives the studio unique flexibility to structure deals that benefit its creative ecosystem, consumers, and major distribution partners.
Netflix Keeps Building Its Film Arsenal
This updated Pay-1 structure means Netflix will soon serve as a global streaming home for a number of high-profile Sony releases in the years ahead. Unlike rivals such as Disney, Universal, or Paramount, Sony does not operate its own dedicated streaming service, making licensing deals one of its strongest revenue engines – and giving Netflix a steady flow of major studio films for subscribers.
At the same time, Netflix’s broader strategy isn’t limited to licensing. The report notes that the company is also working aggressively to strengthen its long-term position in the market, including efforts aimed at expanding its overall film library. If Netflix can pair Sony’s post-theatrical pipeline with other major acquisitions, it could significantly reshape the balance of power in the streaming wars.
Source: MovieWeb
