Netflix announced on Tuesday that it has signed an agreement with independent movie producer Relativity Media. Relativity Media is a newcomer to the movie production business, but the growing company has the backing of giants such as Lions Gate Entertainment, Sony Pictures, and Universal Studios.
Under the agreement, Netflix would get the first rights to stream popular movies that are typically sent to premium cable channels like Starz, HBO, and Showtime following the movie’s DVD release. This arrangement is a major leap forward for online streaming as it is the first time a major movie producer has turned to online sources for movie distribution instead of traditional paid television. Netflix will be launching this preferred streaming with “The Fighter” and “Skyline”. Additional movies are expected to be added in the future.
[adsense]The deal marks a continued shift in the distribution of major motion pictures in the United States, Netflix said in a statement.
Relativity Media has financed, co-financed or produced more than 200 features, generating more than $13 billion in worldwide box office revenue. “Historically, the rights to distribute these films are pre-sold to pay TV for as long as nine years after their theatrical release,” Ted Sarandos, chief content officer for Netflix said.
Published on July 8, 2010
