Disney Strikes Deal For Sony To Take Over Its DVD, Blu-ray Disc Business

Disney is outsourcing its DVD and Blu-ray disc business to Sony Pictures Entertainment. Variety reports: As part of the deal, Sony will market, sell and distribute all Disney's new releases and catalog titles on physical media to consumers through retailers and distributors in the U.S. and Canada. Disney will continue to manage its own digital media, like premium video-on-demand. It's unclear if this will result in layoffs at Disney. However, the studio is expected to conduct an internal assessment across all business functions that support physical entertainment amid the transition to Sony, according to sources familiar with the agreement. According to Disney, the licensing model allows the studio to continue to offer films and TV shows through physical retailers and to respond to consumer demand more efficiently. The company said the shift is consistent with strategies it's implemented companywide, as well as transitions in other markets.

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