• by Fern Siegel , August 11, 2010

If you're a movie lover, and a Netflix patron, your film options just got bigger.

Netflix signed a deal with Epix, a pay-TV channel, that allows Netflix members to watch new releases and library titles streamed over the Internet. Movies come courtesy of Paramount, Lionsgate and MGM; the five-year deal begins Sept 1.

New titles will be available faster than usual -- 90 days after their premium pay TV and subscription on demand begins.

The alliance is a major boost for Netflix's streaming service, since it adds more popular movie titles to its inventory.

On the Epix front, per the Los Angeles Times, the multi-year deal could be worth $1 billion, a healthy sum for a company that's struggled to get carriage deals from traditional cable operators.

Some of the movies included in the deal are "Dinner for Schmucks," "The Expendables" and "Iron Man 2."

Ted Sarandos, chief content officer for Netflix, called the partnership "innovative" and stated it broadened "the scope and freshness of choices available to our members to watch instantly over the Internet."

Mark Greenberg, president of Epix, added: "We are pleased to be able to continue our mission of bringing consumers the movies where they want to watch them, while satisfying the differing needs of cable, telco and satellite operators."

Greenberg told the LAT he expects to reach between 3 million and 4 million TV subscribers this summer. The new deal would immediately make Epix's movies available to 15 million Netflix subscribers; 61% have previously used its online service.

Netflix has similar arrangements with Relativity Media and Starz.

Separately, Blockbuster Inc. and Comcast Corp. are testing a DVDs-by-mail service that gives the cabler's subscribers discounts to Blockbuster's movies and TV shows. The test serves a double purpose: helping Blockbuster advertise its stores and mail service and giving Comcast more movies and delivery options.

The trial marketing partnership includes a test program using Blockbuster employees in Portland, Oregon, to sell Comcast's video, voice and data services. It's expected to roll out to other markets, says a Comcast rep.