Netflix Inc. (NFLX), the streaming content service that is losing its deal with Walt Disney Co. (DIS), is reportedly in ongoing talks about keeping Marvel and Star Wars film streaming rights after 2019.

Netflix Chief Content Officer Ted Sarandos told Reuters the company is “still in active discussions” with Disney about how it can retain the streaming rights after the entertainment juggernaut pulls its Disney and Pixar movies off the platform. The executive said he thinks Disney’s impending service will be “complementary” to Netflix, noting it's “a natural evolution” for all sorts of media companies and something that didn’t catch the company by surprise. "That's why we got into the originals business five years ago, anticipating it may be not as easy a conversation with studios and networks," he told Reuters. (See also: Analyzing Netflix's Spending on Content.)

Disney declined to comment on Sarandos' remarks, but on a earnings conference call earlier this week, when the company unveiled its streaming ambitions, CEO Bob Iger said it's possible that Marvel and Star Wars movies can stay on Netflix, land on another streaming service or Disney can keep them for its own platform. (See more: Disney-Netflix Divorce Signals Death of Cable.)

Hit to Netflix Share Price

Earlier this week, the entertainment juggernaut shook Netflix investors to the core when it announced it was gearing up to launch its own streaming service that will be home to a slew of its programming including its movies, children's shows and other original content. It also announced it would pull its Disney-branded movies from Netflix which sent shares of the leading streaming service into a decline. Netflix’s stock finished the trading session Thursday down 3.8% or $6.64 to $169.14 a share. Since Tuesday, when Disney made its plans public, the stock has been in a downward spiral.

Ahead of the announcement of the impending end of its relationship, Netflix aimed to position itself better by making its first acquisition ever with the purchase of comic book publisher Millarworld. Terms of the deal were not disclosed. Netflix said that it intends to bring "Millarworld's portfolio of critically and fan-acclaimed character franchises to life through films, series and kids' shows available exclusively to Netflix members globally," according to a company announcement. The move is an effort by Netflix to boost its intellectual property (IP) portfolio and reduce its dependence on licensing fees. In a recent shareholder letter, the company listed the benefits of original content, which range from lower costs to greater rights flexibility. Netflix is on track on to spend more than $5 billion on original content globally this year. The company is financing its efforts largely through debt.


Want to learn how to invest?

Get a free 10 week email series that will teach you how to start investing.

Delivered twice a week, straight to your inbox.