Rebecca Rubin Film and Media Reporter Disney is outsourcing a big piece of its home entertainment division to Sony Pictures Entertainment, which will manufacture, distribute and market the Mouse House’s DVDs and Blu-ray discs and other physical media.
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.
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