Following the announcement that the Disney Movie Club is ending after 23 years, a new report from Variety says that Disney has made a new deal with Sony to outsource its physical media business.

Disney and Sony Make a Deal for Physical Media Production

With this new deal, Sony Pictures Entertainment will manufacture, distribute, and market Disney’s DVDs, Blu-ray discs, and other physical media releases to retailers in the U.S. and Canada.Disney stopped selling physical DVDs and Blu-rays in Australia last year.

Disney will continue to manage its own digital media, like PVOD (premium video-on-demand).

Per Variety, Disney is expected to hold an internal assessment across all business functions related to physical entertainment and the transition to Sony, according to sources familiar with the agreement. It is unclear if this will result in layoffs.

Are you a Disney physical media collector? Or have you embraced the impending all-digital future? Share your thoughts on this new agreement with us in the comments.

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