Netflix Lands Disney Library Deal as Wall Street Weighs Slowing Momentum

Netflix secures a global Disney licensing pact starting Sunday, while shares fall 17% over 30 days ahead of Q3 earnings on October 20.

Netflix has secured a global licensing agreement with Disney covering a selection of films and series, a pact reported by Reuters that hands the streaming giant a batch of recognizable franchises while it navigates a softer stretch on the stock market.

The first wave arrives as soon as Sunday, when the opening seasons of Percy Jackson and the Olympians and all five existing Ice Age films land on the platform for three-month windows. Further titles will roll out in stages, with animated features including Soul, Elio and Raya and the Last Dragon slated to join early in 2027, though timing and territories will vary by market. Disney continues to keep the bulk of its catalog exclusive to its own services, led by Disney+, and is using the arrangement to open additional distribution windows rather than loosen that grip.

The programming push comes alongside leadership changes. Netflix has recruited Naomi Bulochnikov-Paul, a communications executive with eight years at Disney behind her, to oversee global communications for series as well as newer categories such as live content and sports. Katie Martin Kelley is also moving over from Warner Bros. to head communications for the film division.

A Rough Month for the Share Price

The expanded slate lands during a difficult period for the stock. Netflix shares slipped 1.3% on Friday to close at EUR 59.56, extending a 30-day decline of 17%. Investor nerves have been frayed by questions over subscriber engagement and mounting competition from platforms such as YouTube.

Co-CEO Ted Sarandos acknowledged the pressure candidly, telling a Bloomberg conference on Wednesday that the company is not growing as quickly as it would like. The mood was further dented roughly two weeks earlier by downgrades from HSBC and Wells Fargo, with HSBC pointing to competitive pressure and rising content spending.

Not everyone has turned bearish. Bryan Kraft of Deutsche Bank upgraded the stock to "Buy," though he trimmed his price target to USD 95 from USD 100 — a nod to both the upside he still sees and the tougher environment the company faces.

Advertising Push and European Originals

Netflix continues to broaden its revenue base even as sentiment cools. At the end of September, the company said its advertising-supported tier would launch in nine more European countries on March 1, 2027, including Austria, Switzerland, Belgium and Sweden. So-called pause ads are set to become programmatically available through partner platforms starting next month.

On the content side, the company unveiled two new European productions on Friday: the Spanish reality competition series Plex: Última partida, produced by Fremantle and filmed on islands in the Dominican Republic, and a trailer for the Swedish psychological thriller A Couple of Lies, due for release on October 30. Netflix also extended its partnership for the children's series Sesame Street and put a related feature film into development. Mid-September brought word, according to media reports, that the company had joined industry partners in a new alliance to coordinate on regulatory matters such as sports broadcasting rights.

October 20 Earnings on the Radar

All of this activity sets the stage for the company's third-quarter report, due October 20, 2026, when Netflix will also present its business outlook. Management has guided toward revenue of USD 12.86 billion and earnings per share of USD 0.82.

With more than 325 million subscribers worldwide, Netflix is counting on a steady flow of popular brands to keep viewing activity elevated — a priority that grows sharper as the advertising market stays crowded and rivals like YouTube compete for the same attention.