Apple Inc. And Google Inc Come Together For Disney Deal

Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL) (NASDAQ:GOOG), two bitter rivals, have been brought together by Walt Disney Co (NYSE:DIS), says a report from the Wall Street Journal. Under the agreement, both tech firms will allow users to buy Disney movies from their stores to watch on smartphones, tablets and other digital devices running on the rival’s operating system.

Apple and Google together

As of Tuesday, November 4th, users who register with the Disney movies Anywhere app and buy “Frozen” from Google Play store on an Android tablet can also watch the movie on Apple TV through the  iTunes library.

Until now, Apple did not allow the users to play movies and TV shows on any other devices except for those running on iOS with Mac or Windows computers. Similarly, Google also didn’t allow its users to watch movies and content on any foreign operating systems.

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Smartphone companies have adopted this strategy for a long time, and Hollywood studios have always opposed this kind of consumer lock out by the companies. Studios argue that consumers do not buy digital movies because they are restricted by their devices. On the other hand, DVDs work on players built by any manufacturer.

Under the new agreement, Apple as well as Google has decided to pay Disney a wholesale rate for each copy of a film that they sell. Jamie Voris, chief technology officer at Walt Disney Studios, said, “This is about getting people comfortable with building their digital movie collection.” Voris said that Disney will continue to safeguard users’ interests, and make sure that they can watch movies whenever they want to.

An important deal for all parties involved

This deal is particularly important considering all of the major Hollywood studios are a part of a group called Ultraviolet, similar to Disney Movies Anywhere. The Ultraviolet coalition allows users to build a library of movies online without worrying about the device they use to watch.

The advent of Ultraviolet dates back to 2011 with supporters such as Time Warner Inc’s Warner Bros and Sony Corp’s Sony Pictures Entertainment. However, Apple is still not a part of the group.

Apple Inc. (NASDAQ:AAPL)’s market share is decreasing, but it still controls 61% of online movies sales, according to a research firm IHS. After entering into a pact with Apple and Google, Disney Movies Anywhere could work across retailers accounting for more than two-thirds of total digital movie sales.