Shares of Starz (NASDAQ:STRZA) surged more than 8% in Monday midday trading after the cable channel announced that it had inked a multi-year deal with Sony Pictures (NYSE:SNE).
No financial terms were announced. However, the agreement means that Starz will continue to broadcast Sony Pictures films through 2021. The company was bidding against video streaming provider Netflix (NASDAQ:NFLX) for rights to Sony movies, the Los Angeles Times notes.
Starz officials noted that the deal’s terms were comparable to other contracts between television networks and film studios. Cable TV networks usually pay up to 12% of a movie’s box office receipts for the right to air it.
Last year, Netflix won the rights to Disney (NYSE:DIS) films, outbidding Starz.
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