Netflix to Stream Movies from Paramount, Lionsgate, MGM
Posted by Jesse Ward on Thursday, August 12, 2010 · 
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Netflix has signed a new, five-year deal with pay-TV channel Epix for the exclusive online streaming rights to new releases from Paramount, Lionsgate and Metro-Goldwyn-Mayer (MGM) starting 90 days after the content debuts on Epix and other premium-pay TV and on-demand channels.
The agreement, worth $1 billion to Epix in licensing fees over the course of the contract, will commence September 1.
With numerous content and technology partnerships, Netflix is a formidable force in the video-on-demand (VoD) marketplace, often compared to pay-TV channel HBO in terms of its importance.
Netflix already has deals in place with pay-channel Starz for movies from Disney and Sony Pictures, and an exclusive agreement with Relativity Media. The deal with Epix is a big boost to Netflix’s VoD “Watch Instantly” offerings, and furthers the company’s goal to convert rent-by-mail customers to online streaming users. Netflix software is now embedded in more than a dozen set-top boxes such as Microsoft, Panasonic, Sharp, LG, Samsung, Sony, Roku and TiVo.
Epix launched in 2009 as a partnership between Viacom, MGM and Lionsgate. The company has had limited success in the Pay-TV ecosystem, striking deals with Charter, Dish, Cox, Verizon, and other smaller operators. The agreement with Netfix makes Epix immediately profitable.
For more, see this LA Times article, and this press release.
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