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Netflix and Relativity Media to Stream First Run, Studio Quality Theatrical Movies to Netflix Subscribers
Netflix
and Relativity Media announce a long term agreement through which major theatrically released films owned by Relativity will be licensed directly and exclusively to Netflix for streaming to its subscribers during the "pay TV window." Traditionally, these films have flowed through Relativity's studio releasing partners to output deals with premium TV channels.
The deal marks a continued shift in the distribution of major motion pictures in the U.S. Under the agreement, an increasing amount of popular contemporary movies previously encumbered by pay TV agreements with premium channels such as HBO, Showtime and Starz will become available to be streamed from Netflix months – and not years – after their release on DVD. It will be the first time that studio quality theatrical feature films will be streamed via subscription by Netflix instead of being broadcast by the traditional pay providers, and it opens up a new revenue stream for such movies.
Among the first wave of films covered under the Netflix-Relativity deal are "The Fighter," starring Christian Bale, Mark Wahlberg and Amy Adams and distributed by Paramount Pictures, and "Skyline," co-directed by the Brothers Strause and released by Rogue Pictures and Universal Studios. Both films are scheduled for theatrical release later this year and to be available at Netflix in early 2011. Also on tap for Netflix are Rogue Pictures' Nicolas Cage action/thriller "Season of the Witch" and "Movie 43," written and directed by Peter Farley. Both are set to hit theaters this year as well.
Relativity has financed, co-financed or produced more than 200 features, generating more than $13 billion in worldwide box office revenue. Fifty Relativity films have become "Top 10" box office releases during the past two years. Current Relativity theatrical releases include "Robin Hood," "Get Him to the Greek" and "Grown Ups." Relativity produces and/or finances between 20 and 30 pictures a year, and it has more than 10 "single picture" movies – films it is financing and producing fully – that are scheduled to be released over the next 12 months.
Broadening the range and appeal of content available for Netflix members to watch instantly is among the company's top priorities, and the agreement with Relativity is a meaningful step in building the company's streaming offer.
The deal was negotiated on Relativity's behalf by Mr. Joe and Andrew Marcus, the company's chief operating officer, and on behalf of Netflix by Robert Kyncl, the company's vice president of content acquisition.
Posted on Jul 07, 2010
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