Netflix shares skyrocketed on Tuesday after the streaming video service announced it scored an exclusive deal with Disney to stream its movies.
This is a huge deal for Netflix—giving it the same kind of access to content that was previously reserved for pay-TV channels like Starz, Showtime, HBO, and Epix.
It also shows that Netflix is willing to pay up for premium content in order to compete with premium cable TV channels, and it must have paid up, otherwise Disney would have gone with one of its many other options.
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