Netflix, Amazon can boast new Disney deals

There's an arms race heating up in online video, and Netflix and Amazon just made sure their catalogs are loaded with Disney-owned shows.

This is exactly how the Hollywood studios want the online video sector to look: several companies paying for and distributing their content while competing on things like convenience and price.

Greg Sandoval/CNET

Disney has renewed a licensing agreement with Netflix and penned a new deal with Amazon that will give both a crack at much of the same content.

Netflix will continue to offer on its streaming service past seasons of Disney's "Hannah Montana" and of Disney-owned ABC's "Ugly Betty," "Grey's Anatomy," and "Lost." Amazon's deals also brings many of the same shows, as well as prior seasons of animated series from Disney-owned Marvel Entertainment, including "X-Men Evolution" and "Spider-Man."

Looks like the studios are getting the hang of this Internet-distribution thingy. Earlier in the year, one studio executive said that part of the problem the major Hollywood studios faced with Netflix and Internet distribution was how to price the content they licensed. The other issue was that many of them wanted to make sure Netflix didn't swallow the entire market whole before any other companies had a chance to start competing.

Netflix is still the sector's dominate force, but Amazon, Hulu, Walmart's Vudu, and Blockbuster are in there scrapping too. The sector is developing into the kind of competitive environment the studios prefer. Every supplier wants numerous retailers bidding up the prices for their products.

As for Netflix, the more content it licenses and the more choices of video offered via its streaming service, the less important its recent price increase will become. In September, Netflix began charging $16 per month, up from $10, to receive access to video streaming as well as DVDs by mail.

 

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