The deal includes long-term licensing agreements that position Conectiv to manage the end-to-end supply chain for both studios' packaged media. By merging the sales and distribution infrastructure of SDS with its own manufacturing and logistics capabilities, Conectiv aims to streamline the physical media market. Executives from all three companies emphasized that despite the shift toward streaming, physical media remains a vital component of the broader home entertainment ecosystem.

"The physical media business continues to be a vital part of the home entertainment ecosystem," noted Justin Che, President of Universal Pictures Home Entertainment. The integration will see SDS initially function as a standalone operation to prevent service interruptions for retailers and consumers. Following this transition, Conectiv plans to phase in a more unified model, integrating content management, fulfillment, and omnichannel distribution under a single corporate umbrella. While the financial terms of the transaction were not disclosed, the acquisition marks a significant expansion for the Memphis-based company, which is a portfolio firm of the Los Angeles-based private equity group Variant Equity.