The news: Disney expanded its content-licensing relationship with Netflix by putting a mix of Disney+ originals, current TV series, and non-franchised Disney-branded films on its biggest streaming rival’s platform, per Variety.

Some will be directly tied to new upcoming Disney releases—such as seasons 1 and 2 of “Percy Jackson and the Olympians” hitting Netflix before season 3 airs on Disney+ and five “Ice Age” movies arriving ahead of the franchise's next installment.

The arrangement is non-exclusive, letting Disney keep its content on Disney+ and Hulu while monetizing Netflix’s distribution engine.

Zooming out: Disney is capitalizing on Netflix’s audience size by turning it into a channel for customer acquisition and franchise marketing rather than a straight-up competitor. The release timing for “Percy Jackson” makes this clear, as Netflix introduces viewers to the franchise right before they must head to Disney+ for the upcoming season.

The partnership could further support Netflix’s dominance, which we forecast will have more than twice the worldwide subscription viewers of Disney+ this year, and boost subscriptions as its revenue growth slows and time spent flattens. Netflix co-CEO Ted Sarandos said at a Bloomberg conference last week that the company’s engagement is not “growing as fast” as he wants.

The streaming giant has been pushing to expand its library by acquiring content from outside platforms, including by pursuing creator deals with YouTube influencers—a tactic that YouTube is pushing back on.

Implications for marketers: Disney is prioritizing engagement over walled-garden exclusivity, but other entertainment companies may hesitate while they balance content prestige and reach. As series and franchises move across streaming, theatrical, connected TV (CTV), and linear channels, they can act as subscription bait with greater opportunities to reach diverse audiences.

Rival platforms using one another as discovery engines introduces symbiotic relationships that increase value for audiences. Popular IP could be unencumbered from single platforms, offering more opportunities to reach the same fandom across ecosystems.