Netflix to Stream First-Run Movies from Relativity

LOS ANGELES: A long-term agreement sees theatrically released films owned by Relativity Media licensed directly and exclusively to Netflix for streaming ahead of their release on pay TV.

This marks the first time that theatrical feature films will be streamed via subscription by Netflix instead of first heading to a pay-TV window. Among the movies covered under the deal are The Fighter, starring Christian Bale, Mark Wahlberg and Amy Adams and distributed by Paramount Pictures, and Skyline, directed by the Brothers Strause and released by Rogue Pictures and Universal Studios. Both are scheduled for theatrical release later this year and will then be available on Netflix in early 2011. Further titles to be included are Rogue Pictures’ Season of the Witch and Movie 43.

"Our continued goal is to expand the breadth and timeliness of films and TV shows available to stream on Netflix," said Ted Sarandos, the 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. Through our partnership with Relativity, these films will start to become available to our members just months after their DVD release."

Sarandos continued: "Relativity has produced and financed some of the biggest and best films released in the last few years. We are thrilled to partner with them on their exciting upcoming slate of films and to be part of each other’s ongoing success."

"We have always been about finding new ways to grow and monetize our business," commented Ryan Kavanaugh, Relativity’s CEO. "This clearly is a natural step in the evolution of the movie business and opens up a whole new world of revenue and marketing opportunities. Netflix has certainly made its mark, with a service that reaches over 13 million people and allows consumers to have what they want, when they want it. We have a shared vision, and this deal marks a significant change in our industry."

"Consumer demand and interest in new platforms are evolving nearly as quickly as the technology," added Michael J. Joe, Relativity’s president. "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. We’re delighted to partner with them on this incredible new opportunity, which has great promise for our industry-reshaping pay-TV deals going forward."