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August 3, 2018

Disney Facing ‘Resistance’ From Turner in Effort to Get TV Rights of ‘Star Wars’ Films for Streaming Service

by John_A

It’s been nearly one year since Disney announced that it will pull all of its movies from Netflix and launch its own streaming service in late 2019, including both TV shows and movies from Marvel and Star Wars. This week, however, Bloomberg reports that the company is facing troubles with the TV rights to the Star Wars film franchise, dating back to a deal it made with Turner Broadcasting in 2016.

Under that agreement, Turner gained the linear basic cable and companion ad-supported on-demand rights to five of the six Star Wars films released between 1977 and 2005 (The Empire Strikes Back to Revenge of the Sith), as well as the new films that began releasing in 2015 (as of now including The Force Awakens, Rogue One: A Star Wars Story, The Last Jedi, and Solo: A Star Wars Story). With these rights, which also includes A New Hope rights inked in a deal with 20th Century Fox, Turner has been airing the Star Wars movies on networks like TNT and TBS, and its deal with Disney grants it the ability to keep doing so until 2024.

Now that Disney is planning its own dedicated streaming service, however, the company wants these rights back so it can be the sole location for users to find and stream the entire Star Wars canon. To do so, Disney has made a “preliminary inquiry” about regaining the rights, but has “met resistance” from Turner, according to people familiar with the matter.

Turner would reportedly want financial considerations and programming to replace the Star Wars films it would lose, but the talks have yet to advance. If Disney doesn’t get the rights back, its streaming service would be missing one of the main franchises that many users would be signing up for, although new Star Wars content could appear, such as numerous Star Wars TV shows “specifically” created for the service.

As we get near the launch of Disney’s direct-to-consumer app, more of its films have begun disappearing from Netflix, including titles like Finding Dory this month. In regards to Star Wars, Bloomberg reports that Disney’s deal with Netflix for recent Star Wars films — including the currently-streaming Star Wars: The Last Jedi — will expire “at the end of this year.”

Similar to Disney, Apple is on the hunt to fill its own upcoming streaming TV service with an instant catalog of existing shows and potentially even movies. Apple hasn’t discussed its streaming service as much as Disney, however, so it’s still unclear how it will launch, how much it will be (Disney says its own will be priced “substantially below” Netflix), and when exactly users will be able to watch the first TV shows beyond sometime after March 2019.

At the same time that Disney attempts to negotiate the TV rights to the Star Wars films back into its fold, the company is nearing completion on its $71.3 billion acquisition of 21st Century Fox’s entertainment assets, which will provide another influx of content for its streaming service.

Tags: Disney, Star Wars
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