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Netflix: The Rival Disney Now SuppliesNarrow moat

Walt Disney (DIS) — moat facet

Disney pulled its films from Netflix to launch Disney+, and in October 2026 it licensed Ice Age, Percy Jackson and Pixar titles back to it.

Netflix is Disney's rival in streaming and, since October 2026, a customer again. Disney Entertainment and Netflix "have entered into an expansive new content licensing agreement"1. All five Ice Age films and the first two seasons of Percy Jackson and the Olympians arrive on Netflix from 4 October, the latter as a three-month promotional window before season three premieres on Disney+ on 20 November2. Will Trent and Felicity are included, and Pixar's Soul and Elio follow in early 20273.

Market value, October 2026 ($bn)Netflix279.2Walt Disney176.5companiesmarketcap.com, 2 October 2026
The rival is worth more than the whole of Disney.

That is a reversal. Before Disney+ launched in November 20194, Disney bought back rights to its films and pulled its Marvel series from Netflix5, and Bob Iger once likened licensing content to Netflix to "selling nuclear weapons technology to a Third World country"6. Now Disney is using Netflix's subscriber base, which Variety put at over 325 million7, to earn money on older titles and to advertise new ones.

The relationship is therefore two things at once. As a rival, Netflix is the larger streaming business: worth $279.23 billion against Disney's $176.45 billion for the whole company8. As a buyer, it pays Disney for titles Disney's own services already carry. Netflix's own pages in this app describe this from its side, under The Studios That Sell to Netflix and Compete With It.

For Disney the deal is a measure of confidence. Selling library titles to a rival makes sense only if Disney believes its own subscribers will stay for the newest material, and if the cash is worth more than the exclusivity. Content sales fell 6% in the latest quarter9, so the revenue is welcome.

Disney says the titles will not leave its own services. What's on Netflix notes that "This is a licensing deal, meaning these shows and movies will share a home on both Netflix and Disney's own" platforms10. Disney is selling a second window, not giving up the first.

The risk is that licensing becomes a habit that thins Disney+. Current-season series or recent Pixar films licensed to Netflix within their first year, rather than library titles and promotional windows, would tell you that the exclusivity that built Disney+ is eroding by Disney's own choice.

Moat trajectory: Holding steady

Licensing deal of October 2026; Netflix worth $279bn against Disney's $176bn.

The number that tests this moat
Reported
Entertainment content sales revenue growth, latest quarter
-6% (Q3 FY2026: $1,596M against $1,698M)

The line licensing to rivals feeds; continued declines would make deals like Netflix's a necessity rather than a choice.

Source: Walt Disney Q3 FY2026 earnings release ↗
References
  1. ReportedDisney Entertainment and Netflix "have entered into an expansive new content licensing agreement".
    Variety, October 2026 - Disney licenses library titles and current-season shows to Netflix, including the Ice Age films, Percy Jackson and the Olympians, Will Trent and Felicity, with Pixar titles to follow in 2027. — October 2026 · publ. October 2026 · source ↗
  2. ReportedAll five Ice Age films and the first two seasons of Percy Jackson and the Olympians arrive on Netflix from 4 October, the latter as a three-month promotional window before season three premieres on Disney+ on 20 November.
    Variety, October 2026 - Disney licenses library titles and current-season shows to Netflix, including the Ice Age films, Percy Jackson and the Olympians, Will Trent and Felicity, with Pixar titles to follow in 2027. — October 2026 · publ. October 2026 · source ↗
  3. ReportedWill Trent and Felicity are included, and Pixar's Soul and Elio follow in early 2027.
    What's on Netflix, October 2026 - details of the Disney licensing deal: Ice Age films, Percy Jackson, Will Trent, Felicity, and Pixar's Soul and Elio in early 2027. — October 2026 · publ. October 2026 · source ↗
  4. ReportedBefore Disney+ launched in November 2019, Disney bought back rights to its films and pulled its Marvel series from Netflix, and Bob Iger once likened licensing content to Netflix to "selling nuclear weapons technology to a Third World country".
    The Walt Disney Company Form 10-K for fiscal 2020 - restructuring and impairment charges of $5.7 billion including $4,953 million of goodwill and intangible impairments at International Channels, $2,846 million of TFCF and Hulu acquisition amortization, the 2019 Hulu gain and the launch of Disney+ in November 2019. — FY2020 · publ. November 2020 · source ↗
  5. ReportedBefore Disney+ launched in November 2019, Disney bought back rights to its films and pulled its Marvel series from Netflix, and Bob Iger once likened licensing content to Netflix to "selling nuclear weapons technology to a Third World country".
    What's on Netflix, October 2026 - details of the Disney licensing deal: Ice Age films, Percy Jackson, Will Trent, Felicity, and Pixar's Soul and Elio in early 2027. — October 2026 · publ. October 2026 · source ↗
  6. ReportedBefore Disney+ launched in November 2019, Disney bought back rights to its films and pulled its Marvel series from Netflix, and Bob Iger once likened licensing content to Netflix to "selling nuclear weapons technology to a Third World country".
    What's on Netflix, October 2026 - details of the Disney licensing deal: Ice Age films, Percy Jackson, Will Trent, Felicity, and Pixar's Soul and Elio in early 2027. — October 2026 · publ. October 2026 · source ↗
  7. ReportedNow Disney is using Netflix's subscriber base, which Variety put at over 325 million, to earn money on older titles and to advertise new ones.
    Variety, October 2026 - Disney licenses library titles and current-season shows to Netflix, including the Ice Age films, Percy Jackson and the Olympians, Will Trent and Felicity, with Pixar titles to follow in 2027. — October 2026 · publ. October 2026 · source ↗
  8. Third-party estimateAs a rival, Netflix is the larger streaming business: worth $279.23 billion against Disney's $176.45 billion for the whole company.
    companiesmarketcap.com, Walt Disney market capitalisation: $176.45 billion (October 2026); calendar year-end values $173.71B (2015), $165.86B, $162.04B, $164.47B, $257.58B, $328.02B, $281.53B, $158.43B, $165.25B, $202.01B, $204.17B (2025); Netflix $279.23B. — 2015-2026 · publ. 2 October 2026 · source ↗
  9. ReportedContent sales fell 6% in the latest quarter, so the revenue is welcome.
    The Walt Disney Company third-quarter fiscal 2026 earnings release, Form 8-K exhibit 99.1 - Entertainment results by revenue type, the shareholder letter and segment totals. — Q3 FY2026 · publ. 5 August 2026 · source ↗
  10. ReportedWhat's on Netflix notes that "This is a licensing deal, meaning these shows and movies will share a home on both Netflix and Disney's own" platforms.
    What's on Netflix, October 2026 - details of the Disney licensing deal: Ice Age films, Percy Jackson, Will Trent, Felicity, and Pixar's Soul and Elio in early 2027. — October 2026 · publ. October 2026 · source ↗
Sources
Generated October 5, 2026