(MENAFN - AFP) Netflix shares jumped Tuesday with word that the online service struck an exclusive deal to stream live-action animated feature films from The Walt Disney Studios.
"It's a bold leap forward for Internet television and we are incredibly pleased and proud this iconic family brand is teaming with Netflix to make this happen," said Netflix chief content officer Ted Sarandos.
"Disney and Netflix have shared a long and mutually beneficial relationship and this deal will bring to our subscribers, in the first pay TV window, some of the highest-quality, most imaginative family films being made today."
Netflix shares were up more than 10 percent to 83.92 on the news.
Beginning in 2016, theatrically released films from Disney and subsidiaries including Pixar Animation Studios will be instantly available for viewing on-demand for a price at Netflix, according to the companies.
"We are thrilled to take our highly valued relationship with Netflix to the next level by adding Disney's premier films to their programming line-up," Disney-ABC Domestic Television president Janice Marinelli said in a release.
Disney and Netflix said they reached a separate agreement to bring an archive of classic films such as "Dumbo" and "Alice in Wonderland" to US members of the California-based online video streaming service.
Financial terms of the agreements were not disclosed.