Netflix to stream Paramount, Lionsgate, MGM movies

[lacubs]

OS ANGELES – 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 Viacom Inc.'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 movies 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.

[Groo The Perverted]

Would be nice if they could get streaming Showtime episodes a day or so after they air.

Would be cool to get Nurse Jackie and Dexters via streaming.

[jsscooby]

This is awesome. Their current selection is sweet, this will just make it phenomenal.

[Jwilly019]

Originally Posted by Groo The Perverted

Would be nice if they could get streaming Showtime episodes a day or so after they air.

Would be cool to get Nurse Jackie and Dextersvia streaming.

The first 2 seasons of Dexter are already available for streaming.

Justin

[Groo The Perverted]

Originally Posted by Jwilly019

The first 2 seasons of Dexter are already available for streaming.

Justin

I meant soon after it airs.

[Jwilly019]

Originally Posted by Groo The Perverted

I meant soon after it airs.

Ahh, my mistake. Yes, that would be great if they added that to the service.

Justin

[Stephie_is_a_dork]

Interesting. Fiance & I were just discussing cancelling Epix and subscribing to Blockbuster-by-mail instead, now that they're including games at no extra cost. Epix seems to have most of the same movies month after month.

[Marine Mike]

Originally Posted by Stephie_is_a_dork

Interesting. Fiance & I were just discussing cancelling Epix and subscribing to Blockbuster-by-mail instead, now that they're including games at no extra cost. Epix seems to have most of the same movies month after month.

Not to get too off topic, but how would you compared Blockbuster to Gamefly with having games available?

[Stephie_is_a_dork]

Originally Posted by Marine Mike

Not to get too off topic, but how would you compared Blockbuster to Gamefly with having games available?

I said we were thinking about resubscribing to BB. We don't have it now, and have never had Gamefly...sorry!

[CYMBOL]

Originally Posted by Marine Mike

Not to get too off topic, but how would you compared Blockbuster to Gamefly with having games available?

It only started yesterday - so that will take a while to surmise.

[IStoleYourUsername]

We now return to the original topic:

I sure hope they up the HD streaming...seems like most of the movies I want to watch in in SD

[NJ_RAMS_FAN]

just signed to netflix.. lets see how i like it.