Netflix to stream Paramount, Lionsgate, MGM movies

August 10, 2010 By RYAN NAKASHIMA and MICHAEL LIEDTKE , AP Business Writers
This Jan. 29, 2010 file photo, shows the company logo and view of Netflix headquarters in Los Gatos, Calif. Netflix Inc. has reached a multiyear agreement Tuesday, Aug. 10, 2010, to stream movies from Paramount, Lionsgate and MGM online starting Sept. 1. It's a major move as Netflix looks to cater to people who want to watch movies instantly. (AP Photo/Marcio Jose Sanchez, file)

(AP) -- Netflix Inc. has reached a five-year deal worth nearly $1 billion to stream movies from Paramount, Lionsgate and MGM online starting Sept. 1 - a major move that boosts its "Watch Instantly" offerings and makes the studios' joint pay TV venture Epix immediately profitable.

The agreement marks a further push by Netflix to stream movies to homes directly via personal computers, game consoles, Blu-ray players and TVs, and away from its rent-by-mail method. Netflix is trying to get its customers to view movies online so it can save on postage costs. Its shares jumped more than 6 percent.

The deal vastly increases the amount Netflix spends on streaming movies annually. It spent $117 million in the first six months this year on streaming, up from $31 million a year ago. The new deal adds roughly $200 million a year to that tab.

Epix, the pay TV channel launched last October by .'s Paramount Pictures, Metro-Goldwyn-Mayer Inc. and Lions Gate Entertainment Corp., will make the movies, including new releases, available to Netflix 90 days after they premiere on premium pay TV and subscription on-demand. Epix holds subscription pay TV rights to new releases and movies from its partners' libraries.

"Coupled with our other carriage deals, this makes Epix immediately profitable," Lions Gate CEO Jon Feltheimer told analysts on a conference call Tuesday.

Netflix said that previously these rights to distribute films are pre-sold to pay TV for up to nine years after a movie's theatrical release. The deal means it can add many more popular from major studios.

Shares of Netflix rose $7.62, or 6.5 percent, to $124.52 on heavy volume in midday trading Tuesday. Viacom's Class B shares were up 6 cents at $33.73 and Lions Gate shares rose 2 cents to $6.60. MGM is privately held.

Explore further: Netflix ups fees for Blu-ray amid rising demand


Related Stories

Netflix ups fees for Blu-ray amid rising demand

March 30, 2009

(AP) -- Online DVD rental leader Netflix Inc. is raising its prices for Blu-ray discs in a change that will triple or quadruple the high-definition surcharge on Netflix's most popular subscription plans.

Familiar script: Netflix 2Q tops expectations

July 23, 2009

(AP) -- Netflix Inc.'s second-quarter profit shot past analyst expectations, following a familiar script as recession-weary consumers flocked to its DVD-by-mail and Internet streaming service.

Netflix movie streaming coming to PlayStation 3

October 26, 2009

(AP) -- PlayStation 3 owners will soon be able to stream movies and TV shows from Netflix to their TVs using the gaming console, just as Xbox 360 owners have been able to do for a year.

Verizon launches TV-online movie channel

October 30, 2009

US telecom firm Verizon launched a high-definition movie channel on Friday, letting subscribers watch films on-demand on televisions or on the Internet.

Wii becomes third console to stream Netflix

January 13, 2010

(AP) -- It's a triple crown for Netflix. Beginning in the spring, the Wii will become the last of the three current video game consoles to get instant viewing of Netflix movies and TV shows over the Internet.

Netflix adds to online movies with Relativity deal

July 6, 2010

(AP) -- Netflix Inc. is adding to the group of movies that its subscribers can watch online or over Internet-connected devices at the same time as they would have appeared on premium pay TV channels such as HBO or Showtime.

Recommended for you

Toyota promises better mileage and ride with Prius hybrid

October 13, 2015

Toyota Motor Corp. released details for its fourth-generation Prius on Tuesday, promising that improvements in the battery, engine, wind resistance and weight mean better mileage for the world's top-selling hybrid car.


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.