Netflix has entered into a partnership with Hollywood production shop Relativity Media, which will give it exclusive streaming rights to movies under Relativity's distribution purview. Per the
deal, films owned by Relativity will be licensed directly and exclusively to Netflix for streaming to its subscribers during the "pay TV window." Industry blog TheWrap.com broke the news on Monday.
The tie-up gives Netflix an added defense against potential threats, and particularly YouTube, which is showing more interest in long-form content. It also threatens the old movie distribution
model under which films flowed through Relativity's studio partners to output deals with premium TV channels like HBO and Showtime.
Under the agreement, movies previously "encumbered" by pay TV
agreements with premium channels will become available to be streamed from Netflix just months after their release on DVD, according to Michael Joe, Relativity's president.
"Consumer demand and
interest in new platforms are evolving nearly as quickly as the technology," said Joe. "The growing number of Netflix subscribers streaming first-run movies is very exciting and presents another
viable option for us to maximize the long-term business behind our properties."
The first films covered under the Netflix-Relativity deal include "The Fighter," starring Christian Bale and
Mark Wahlberg, and distributed by Paramount Pictures; and "Skyline," codirected 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 coming to Netflix is Rogue Pictures' Nicolas Cage action/thriller "Season of the Witch," and "Movie 43," written and
directed by Peter Farley -- both set to hit theaters this year.
To date, Relativity has financed, co-financed or produced more than 200 features, generating more than $13 billion in worldwide
box office revenue. Relativity says it 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 -- which
are scheduled to be released over the next 12 months.
For Netflix, broadening the range of content available for members to watch instantly is among the company's top priorities. "Our
continued goal is to expand the breadth and timeliness of films and TV shows available to stream on Netflix," said Ted Sarandos, chief content officer for Netflix.
"Historically, the rights to
distribute these films are pre-sold to pay TV for as long as nine years after their theatrical release," added Sarandos. "Through our partnership with Relativity, these films will start to become
available to our members just months after their DVD release."