Breaking Down The Disney & Sony Physical Media Deal

Jeff Rauseo
23 Feb 202411:37

Summary

TLDRDisney and Sony have struck a deal for Sony to take over Disney's physical media business, including production, distribution, merchandising, and marketing of Blu-ray, DVD, and 4K releases. This partnership aims to improve profitability and streamline processes for Disney, while leveraging Sony's expertise in the physical media market. The change is expected to fully take effect halfway through 2024 and will initially apply to the movie 'The First Omen,' releasing in April 2024. The deal is limited to the US and Canada and does not grant Sony control over Disney's catalog or decision-making. This move reflects a broader industry trend of consolidation in the face of a shrinking physical media market.

Takeaways

  • 📦 Disney and Sony have entered a physical media distribution deal where Sony will take over Disney's physical media business.
  • 🏀 The news was widely reported after initial confirmation by The Digital Bits, and has been covered by major entertainment news outlets.
  • 🤕 Jeff, the speaker, got a black eye from a men's league basketball game but is keeping it authentic by not covering it up for the video.
  • 🎬 The deal is set to start with the movie 'The First Omen', which is scheduled to release in theaters in April 2024 and on physical media a few months later.
  • 🔄 This change is expected to fully take effect halfway through 2024, marking a significant shift in how Disney handles physical media distribution.
  • 💡 Jeff believes this deal is a positive move for Disney, as they were struggling with profitability and had undergone layoffs in the physical media division after the Fox merger.
  • 📉 Disney's focus has shifted towards Disney Plus, making the internal handling of physical media more challenging and less profitable.
  • 🌟 Sony has a strong track record in Blu-ray and 4K production, managing to turn a profit and streamline processes, which is attractive to Disney for this partnership.
  • 🔒 The deal does not give Sony control over Disney's catalog or decision-making; Disney retains all rights and Sony only handles production, distribution, merchandising, and marketing.
  • 🌍 The distribution deal is limited to the United States and Canada, and does not extend to other regions like Australia, despite Sony's decent distribution there.
  • 📈 Jeff is optimistic about the deal, hoping it will lead to more physical media releases and potentially open the door for licensing opportunities with other boutique labels.

Q & A

  • What is the main topic of the video?

    -The main topic of the video is the recent deal between Disney and Sony regarding the physical media distribution of Disney's home entertainment products.

  • What is the significance of the deal for physical media and home entertainment fans?

    -The deal is significant because it means that Sony will take over the production, distribution, merchandising, and marketing of Disney's physical media, including Blu-ray, DVD, and 4K releases.

  • When was the deal first reported and by whom?

    -The deal was first reported by The Digital Bits and has since been covered by various media outlets including Variety, Deadline, and the Hollywood Reporter.

  • What is the expected timeline for the changes brought about by the deal?

    -The changes are expected to fully go into place halfway through 2024, starting with the movie 'The First Omen' which is set to release in theaters in April 2024.

  • How does the speaker feel about the deal?

    -The speaker thinks it's a good deal. They believe it's a positive move for Disney, which was struggling with profitability and efficiency in its physical media division, and that Sony's expertise in the area will be beneficial.

  • What was the impact of the Fox merger on Disney's physical media team?

    -The Fox merger led to many people being let go from Disney's physical media teams, and the focus shifted more towards Disney Plus, making the production and distribution of physical media more challenging for Disney.

  • What is the speaker's opinion on the consolidation of physical media?

    -The speaker believes that the consolidation of physical media makes business sense, as it allows companies to share costs and resources, which is especially important as the market for physical media shrinks.

  • Does the deal give Sony control over Disney's catalog and decision-making?

    -No, the deal does not give Sony control over Disney's catalog or decision-making. Disney still makes the decisions regarding what titles to release and how to manage their catalog.

  • What is the speaker's hope for the future of physical media?

    -The speaker hopes that the deal will lead to more physical media releases, especially from the Fox, Touchstone, and 20th Century Studios catalogs, and that Disney may find more profit and joy in producing physical media again.

  • What is the geographical scope of the deal?

    -The deal applies only to the United States and Canada. It does not currently extend to other regions, such as Australia.

  • How long might it take to see the full impact of the deal?

    -The speaker suggests that it might take at least a year, possibly 6 months to 18 months, to truly understand how the deal changes things for Disney's physical media business.

Outlines

00:00

🤝 Disney and Sony's Physical Media Distribution Deal

The video begins with the host, Jeff, discussing a significant deal between Disney and Sony regarding physical media distribution. Despite having a black eye from a basketball game, Jeff emphasizes the importance of discussing this news. The deal involves Sony taking over Disney's physical media business, including production, distribution, retail merchandising, and marketing for Disney's Blu-ray, DVD, and 4K releases. The change is set to start with the release of the movie 'the first Omen' in April 2024, which is a 20th Century Studio film. Jeff clarifies that this deal has been confirmed and is not just a rumor. He also shares his thoughts on the deal, considering it a positive move for Disney, which was struggling with profitability and efficiency in its physical media division, especially after the Fox merger. Jeff compares this deal to the studio distribution services deal between Warner Brothers and Universal, highlighting the business sense in such consolidations as the market for physical media shrinks.

05:03

🎬 Misunderstandings about the Disney-Sony Deal

In this paragraph, Jeff addresses common misconceptions about the Disney-Sony deal that have circulated online. He clarifies that the deal does not give Sony access to Disney's entire catalog or decision-making power over which titles are released on physical media. Instead, Sony will handle the production, distribution, merchandising, and marketing, while Disney retains control over these decisions. Jeff explains that Sony's role is to optimize the process for profitability, and while they may have some influence, they do not have control over the catalog. He also notes that the deal is limited to the United States and Canada, disappointing fans in other regions, like Australia, who had hoped for a broader release of Disney titles. Jeff expresses optimism that the deal could lead to more physical media production and a potential rekindling of Disney's interest in physical media distribution.

10:03

🌐 The Future of Physical Media and Potential Industry Shifts

Jeff concludes the video by speculating on the future of physical media and potential industry trends. He suggests that the natural next step could involve more consolidation among companies, with streaming services possibly consolidating physical media. Jeff envisions a future where boutique labels might also benefit from partnerships, licensing deals, and shared workflows, ultimately making the industry more profitable. He emphasizes the importance of profitability for the continuation of physical media production, expressing hope that the Disney-Sony deal could lead to a more sustainable and efficient system. Jeff encourages viewers to stay tuned for updates on the deal's impact over the next year and promises to keep them informed. He ends by inviting viewers to subscribe to his channel for more updates on movies and home entertainment topics and to follow him on social media for additional content.

Mindmap

Keywords

💡Disney and Sony deal

The Disney and Sony deal refers to an agreement where Sony will take over Disney's physical media business, including production, distribution, merchandising, and marketing of Disney's Blu-ray, DVD, and 4K releases. This is a significant development in the home entertainment industry, as it marks a consolidation of efforts to maintain profitability and efficiency in the face of a shrinking physical media market. The deal is set to begin with the release of the movie 'the first Omen' in April 2024.

💡Physical media

Physical media refers to tangible forms of media for storing and playing digital content, such as DVDs, Blu-ray discs, and 4K UHD discs. In the context of the video, physical media is the focus of the distribution deal between Disney and Sony, with the aim of revitalizing the production and distribution of these formats in the face of declining demand and the rise of digital streaming platforms.

💡Home entertainment

Home entertainment refers to the consumption of various forms of entertainment, such as movies and television shows, within the comfort of one's home. This typically involves the use of devices like televisions, DVD players, and gaming consoles to access and enjoy content. In the video, the speaker discusses the impact of the Disney-Sony deal on the home entertainment industry, particularly concerning the future of physical media distribution.

💡Fox and Touchstone catalog

The Fox and Touchstone catalog refers to the collection of movies and TV shows produced under the 20th Century Fox and Touchstone Pictures banners. These catalogs encompass a wide range of titles from various genres and time periods. In the video, the speaker mentions the potential of these catalogs to be tapped into for physical media releases following the Disney-Sony deal, although it is clarified that Sony does not have direct control over which titles are released.

💡4K UHD

4K UHD, or 4K Ultra High Definition, is a resolution format for digital video, offering a significantly higher pixel count than standard high-definition video. It provides a higher quality and more detailed image, enhancing the viewing experience for consumers. In the video, the speaker mentions 4K UHD as one of the formats that Sony will be handling for Disney's physical media distribution, indicating a continued push for high-quality home entertainment options.

💡Streaming services

Streaming services are platforms that deliver content, such as movies and TV shows, over the internet for users to watch on-demand. These services have become increasingly popular due to their convenience and the wide variety of content available. In the video, the speaker discusses the impact of streaming services on the physical media market and the potential for consolidation within the industry as a response.

💡Profitability

Profitability refers to the ability of a business to generate profits, meaning the income from its operations exceeds its expenses. In the context of the video, the speaker discusses the challenges Disney faced in maintaining profitability in their physical media division and how the deal with Sony is expected to improve this by consolidating production and distribution efforts.

💡Consolidation

Consolidation in a business context refers to the process where companies combine or merge to increase efficiency, reduce competition, and improve overall profitability. In the video, the speaker suggests that the Disney-Sony deal is an example of consolidation in the physical media industry, following similar moves by other major studios to share resources and costs.

💡Retail environments

Retail environments refer to the settings where goods and services are sold directly to consumers, including brick-and-mortar stores, online shops, and other sales channels. In the video, the speaker mentions retail environments in the context of the Disney-Sony deal, indicating the importance of these channels in the distribution and availability of physical media.

💡Marketing

Marketing is the process of promoting and selling products or services, including market research, advertising, and other strategies to increase visibility and sales. In the video, marketing is discussed as one of the aspects that Sony will handle as part of the deal with Disney, aiming to increase the appeal and sales of Disney's physical media releases.

💡Catalog titles

Catalog titles refer to previously released movies or TV shows that are part of a studio's or distributor's library. These titles are often re-released or made available on various formats for consumers to purchase. In the video, the speaker talks about the potential for Sony to release more catalog titles from Disney's collection, including those from the Fox and Touchstone libraries, as a result of the new distribution agreement.

Highlights

Disney and Sony have come together on a physical media distribution deal.

Sony will take over Disney's physical media business, handling production, distribution, retail merchandising, and marketing.

The deal is set to begin with the release of the movie 'the first Omen' in theaters in April 2024.

The change will fully go into place halfway through 2024.

Disney was struggling with profitability and efficiency in their physical media division.

Sony has a successful track record with Blu-ray and 4K production, including catalog titles.

This deal is similar to the studio distribution services deal between Warner Brothers and Universal.

The market for physical media is shrinking, making consolidation a sensible business move.

Sony does not gain access to Disney's catalog or decision-making power; Disney maintains control.

The deal guarantees the continuation of physical media production in the United States and Canada.

The deal is limited to the US and Canada, with no immediate benefits for international markets like Australia.

There is potential for more physical media releases and a possible rekindling of Disney's interest in the format.

The success of this partnership could lead to similar arrangements with other boutique labels.

Physical media production and distribution are consolidating, mirroring past studio collaborations.

Profitability is a key factor in the continuation of physical media production.

Disney's decision-making process remains internal and is driven by profit.

The impact of this deal on the physical media market will become clearer over the next 12-18 months.

Staying profitable is crucial for the continued production and sale of physical media.

Transcripts

00:00

hey everyone it's Jeff and today we've

00:01

got to talk about this Disney and Sony

00:03

physical media distribution deal so I

00:06

know I've got a black eye nothing bad

00:08

got a little banged up in a men's league

00:10

basketball game but I told my wife once

00:12

I start putting makeup on for a video

00:15

that's when I know I've gone too far got

00:17

to keep it authentic and I need to talk

00:19

about this news so if you're a physical

00:20

media and home entertainment fan you

00:22

probably saw this news unless you've

00:24

literally been sleeping under a rock it

00:26

was everywhere first reported by the

00:28

digital bits and now it's hit variety

00:31

it's hit deadline it's hit Hollywood

00:32

Reporter it's all over the place but

00:35

essentially Disney and Sony have come

00:38

together on a deal which is going to

00:41

allow Sony to take over Disney's

00:45

physical media business Sony is going to

00:47

be doing all the production work the

00:49

distribution and all of the retail

00:52

merchandising and marketing to get

00:55

Disney Blu-ray DVD and 4K releases out

00:58

the door now this is also supposed to

01:00

start with the movie the first Omen

01:02

which is coming out in theaters in April

01:05

of 2024 it's a fox movie 20th century

01:08

studio so it'll come out on physical you

01:10

know couple months later that'll be the

01:12

first title that this applies to so

01:14

about halfway through 2024 that's when

01:17

this change will fully go into place so

01:20

I heard Rumblings about this for a while

01:24

um I didn't want to say anything about

01:27

it because I couldn't confirm it yet um

01:31

there were potentially people's jobs at

01:34

stake and I just didn't have enough

01:37

information that I felt comfortable like

01:40

saying anything about it um I definitely

01:43

don't have as many sources as like Bill

01:45

hunt does at the digital bits and he

01:48

obviously confirmed it with many more

01:50

people and broke that news and obviously

01:53

um you know based now on responses from

01:55

Disney yeah it's obviously 100% true and

01:59

this this is really happening these

02:01

aren't rumors this is confirmed stuff

02:04

and what I want to do in this video talk

02:05

about it a little bit is this a good

02:07

deal a bad deal do we like this um but I

02:09

also want to clear some stuff up because

02:11

a lot of people online I saw it on

02:13

Reddit I saw it in my own YouTube

02:15

comments I saw it on forums all over the

02:18

internet people are running with this

02:20

deal as if it's some real groundbreaking

02:24

you know open the floodgates moment and

02:27

it's not quite that so we need to talk

02:29

about that clear some stuff up so to

02:31

start do I think this is a good deal bad

02:33

deal what's going on personally I think

02:35

it's a good thing I think Disney was um

02:39

struggling to find profitability they

02:42

were struggling to um you know get their

02:45

processes down their workflows down they

02:47

had unfortunately uh a lot of people

02:49

have been let go from the physical media

02:51

teams after the fox merger and then you

02:54

know the focus on Disney plus and so I

02:56

think it had become really hard to do

02:58

this work completely in internally and

03:01

Sony as you've probably seen has done

03:03

incredible work um with their own

03:06

Blu-ray 4K production tons of catalog

03:08

titles uh even really you know kind of

03:11

obscure weird stuff you wouldn't expect

03:13

to see come to 4K is is coming out and

03:16

they found a way to do this with with

03:18

profit in mind and they've been able to

03:20

nail the process and you know I think

03:22

that's all of what Disney was looking

03:24

for and a partner here and so I

03:26

ultimately think it it's good in that

03:28

aspect in the same way that like the

03:30

studio distribution services deal which

03:33

combined Warner Brothers and Universal

03:35

and kind of made this joint venture that

03:37

allowed them to again share distribution

03:39

costs share marketing costs share

03:42

production costs like this consolidation

03:45

of the physical media world is nothing

03:48

new SDS and Universal and Warner have

03:50

been doing this for years successfully

03:53

um and I think it makes total sense

03:56

because as the market shrinks does it

03:58

make sense for everybody body to have an

04:00

in-house physical media team Maybe not

04:02

maybe it's not as profitable you know

04:03

it's it's it's hard to make a profit on

04:07

this stuff so I think it makes perfect

04:09

business sense and I am optimistic that

04:13

because of that if Disney can start to

04:15

see oh you know there is profit here

04:18

there is profitability especially when

04:19

we're not you know really hurting

04:22

ourselves internally and trying to

04:24

figure out processes and you know delays

04:26

and struggles with getting discs out or

04:28

whatever they may have been going going

04:29

through that was costing them a lot if

04:32

Sony can clear that up then there is

04:35

potentially the appetite for people at

04:37

Disney to say okay let's do more of this

04:40

and they have been you've seen Disney

04:42

Plus shows obviously we've seen the

04:44

James Cameron stuff I'm looking for them

04:46

to hopefully get more into that fox

04:49

catalog the 20th century catalog the

04:51

Touchstone catalog there's a lot of

04:53

untapped potential there now speaking of

04:56

that catalog and and tapping into it and

04:58

what's going on here the sort of instant

05:02

sentiment online was physical media is

05:05

saved Sony releases so many catalog

05:08

titles they're working with Disney the

05:10

floodgates are open we're going to get

05:12

everything from Fox and Touchstone and I

05:14

can't wait for this to come to 4K and

05:16

this is going to get a Blu-ray that's

05:18

not the reality okay so what this deal

05:20

is it's production distribution

05:22

merchandising marketing of physical

05:25

media and Retail environments that's it

05:28

there's this is not Sony getting access

05:32

to Disney's catalog this is not Sony

05:35

taking over uh Disney's physical media

05:38

business in terms of decision making um

05:42

this is Disney saying hey Sony we want

05:45

to do this go do it and do the marketing

05:49

and distribution for us but those

05:51

decisions are still being made by Disney

05:54

they still have to make sense they still

05:56

have to make profit or they're not going

05:58

to do it so so Sony literally has no

06:02

real say in what titles are coming out

06:06

um what Disney is doing with their

06:08

catalog and their Fox and Touchstone

06:10

stuff they have no say in any of that

06:12

now what they may have is some influence

06:14

now to say Hey you know we saw this over

06:17

at Sony you might want to think about

06:19

this title give them recommendations

06:21

help them get this workflow down so that

06:23

it is more profitable so you will see

06:25

more of this stuff but they don't have

06:27

any control over the catalog so although

06:30

there are many 4K Masters sitting there

06:33

at Fox Sony can't just go and say hey

06:36

hey give us that and that and that and

06:38

that Disney still has to give that to

06:40

them so in the grand scheme of things

06:42

yes it's good I think it's probably a

06:46

positive thing I think it hopefully

06:49

fingers crossed means we do get some

06:51

more discs and it also means that

06:55

there's not going to be a cease of

06:57

production of physical media at least in

07:00

the United States and Canada which is

07:02

where this deal applies like we saw

07:04

Disney do in Australia now unfortunately

07:07

for those of you in Australia like I

07:09

just said this deal is US and Canada

07:11

only so there was some hope because Sony

07:13

has pretty decent Australian

07:15

distribution that you know the the

07:17

Aussies out there and my friends in

07:19

Australia would would be able to get

07:21

some more Disney titles they haven't had

07:23

a release since Guardians of the Galaxy

07:24

volume 3 as of right now that's not the

07:27

case but again

07:30

if Sony can pull some influence here you

07:33

never know what could change but right

07:36

now it's US and

07:38

Canada this does guarantee that Disney

07:41

is in the physical media game though

07:43

hopefully for the Long Haul at least for

07:45

their new release stuff so I hope it

07:47

helps I hope Disney can find more profit

07:51

maybe find some joy in doing physical

07:53

media again I imagine as a business when

07:56

it's losing money and it's just not as

07:58

profitable anymore more yeah it cannot

08:00

be fun to do that anymore if you're

08:03

losing money that's not fun for anybody

08:05

people's jobs are at stake so I hope

08:07

that they can work all this out I hope

08:09

Sony helps them I hope Sony influences

08:11

them and it would also be great to see

08:13

them you know potentially just license

08:16

content out as well if this is

08:18

successful maybe to Sony maybe to a

08:21

Criterion shout Studios Arrow you know

08:25

who whoever it may be Kino lber like

08:28

it'd be great to see them maybe do some

08:30

of that work and realize that licensing

08:32

isn't so bad licensing really all you

08:34

got to do is just say hey you know what

08:36

yeah we'll sell you the rights to that

08:38

movie it's x amount of dollars sign on

08:40

the line Disney takes the cash the other

08:42

Boutique label they go and do all the

08:44

work that would be great it seems like

08:47

free money but we have to see like these

08:49

things have to play themselves out so I

08:51

think it's just a natural Next Step

08:52

you're going to see more consolidation

08:55

probably of these companies uh the

08:58

streaming services will probably

08:59

consolidate physical media is now

09:01

consolidating everybody got stretched a

09:03

little too thin trying to do their own

09:05

thing and have this Monopoly on their

09:07

own entertainment and the reality is

09:10

that's never been the way that it's

09:12

really worked there's always been kind

09:13

of shared uh work between Studios and

09:16

and agreements together to work to get

09:19

things out theatrically and on home

09:20

video and now it's kind of coming back

09:23

around to that with streaming and 4K and

09:25

Blu-ray um you know and I I wouldn't be

09:27

surprised too if this type of thing

09:30

starts to extend out to some of those

09:32

Boutique labels as you know they're

09:34

hopefully um you know they've got their

09:36

workflows down and and they're finding

09:38

profitability I hope but you never know

09:41

um and this is totally you know

09:43

speculation but could a you know shout

09:47

Studios and arrow video merge at some

09:51

point could Criterion pick up you know

09:53

some sub label somewhere um you know

09:56

vinegar syndrome has all of their

09:57

partner labels and they're helping them

09:59

with merchandising and marketing and

10:01

they've allowed all these great smaller

10:03

labels to put stuff out on physical

10:05

media like all of that just seems to

10:08

make sense get the experts to do the

10:11

thing they're good at and let the other

10:13

people handle the content and make the

10:15

decisions and uh make this more

10:17

profitable for everybody because if it

10:19

is then that means we get more of it I

10:22

hate to only talk about profits but it's

10:24

a business if they're not making money

10:26

then they're not going to sell the

10:27

product so they need to make it

10:29

profitable they need to figure out their

10:30

workflows and their manufacturing and

10:32

their distribution and if they figure

10:34

that all out and get it nice and

10:35

streamlined then we have a much higher

10:37

chance of getting more stuff in the

10:38

future those are my thoughts hopefully

10:40

you weren't too distracted by the Shiner

10:42

um but hopefully this clears some stuff

10:44

up gives you some answers um there is

10:46

not much out there from Disney or Sony

10:48

just kind of a generic statement from

10:50

Disney um but you know we'll we'll see

10:52

how this all plays out I think this is

10:54

something you have to keep an eye on for

10:55

6 months 12 months 18 months I don't

10:58

think we're going to know how this truly

11:00

changes things for probably at least a

11:03

year so stay tuned I'll keep you guys

11:05

updated so thanks for watching make sure

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11:15

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11:31

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11:33

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11:35

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