According to various reports today, Disney and Sony have struck a deal that will have the latter take over Disney’s physical media production moving forward.
DigitalBits first broke the news today, followed by reports on Variety and Deadline. Per the Deadline report, the deal takes the form of a licensing agreement in which Sony will “market, sell, and distribute” Disney’s new and catalog releases on DVD, Blu-ray, and 4K Ultra DVD in the U.S. and Canada, as well as taking over manufacturing. According to Variety, Disney will continue to handle its own digital media. It’s unclear if the deal will lead to layoffs in Disney’s physical media department.
And, in news that DigitalBits reports is directly related, the Disney Movie Club will also come to a close this summer. Various customers reported being sent notices that informed them that the last day to order from the subscription-based service would be May 20, 2024.
“We have made the difficult decision to close the Disney Movie Club,” reads the announcement. “We will miss the opportunity to serve cherished Disney fans like you!”
Welp. Big Physical Media news today as Disney announces they’re closing the Disney Movie Club. Can’t say I’m too unsurprised given the lack of releases lately. Still very disappointing. Wish they’d utilized it better the last couple years. So much wasted potential. pic.twitter.com/WaHRqRf3iR
— Dave Lee (@daveleedwnundr) February 20, 2024
Disney Movie Club was launched 23 years ago, and offered subscribers exclusive access to Disney’s physical media library.
The news comes as physical media continues to find itself in a decline in the streaming era. Best Buy, for example, plans to phase out its DVD and Blu-ray sales this year, while Netflix mailed out its final DVD rental last September.
Still, the demand for physical media still very much exists, especially in an industry where streaming exclusives like Willow have been completely removed from the platform they were made for, effectively eliminating any legal way of viewing them. Christopher Nolan is among those who’ve said the current situation is “scary for filmmakers,” even as physical copies of his own movie Oppenheimer sold out at various retailers.
IGN has reached out to both Disney and Sony for comment.
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Alex Stedman is a Senior News Editor with IGN, overseeing entertainment reporting. When she’s not writing or editing, you can find her reading fantasy novels or playing Dungeons & Dragons.