Disney and Sony Pictures Entertainment have struck a major deal that involves the former’s physical media. Sony will now handle the manufacturing, distribution, and marketing of Disney’s Blu-rays, DVDs, and other physical media.

This will include all of Disney’s new releases as well as their catalog titles for retail and distribution in the US and Canada. Disney will continue managing their digital media.

The move comes after Disney was reportedly considering dropping physical media entirely, and the news received significant criticism online.

Disney has stated that through the licensing model, they can continue offering their movies and shows to physical retailers with better efficiency. The company did not state whether or not layoffs will occur at Disney, however, they are expected to assess their departments that manage physical media during the move to Sony.

Physical media has been steadily declining in recent years due to streaming services and digital availability. In 2023, Netflix ended their DVD rental program, and earlier this year, Best Buy stopped selling Blu-rays and DVDs.

Still, movies and shows can be found on DVD and Blu-ray in stores and through online retailers. Some filmmakers have stated their support for physical media by pointing out the special features and extra content available on Blu-ray and DVD, and the fact that once its purchased it won’t be lost due to removal from a streaming service.