- Feb 22, 2007
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Good news to hear, hope all this spending they have been doing doesn't raise prices too much.
http://latimesblogs.latimes.com/ent...partnership-to-shake-up-pay-tv-landscape.html
http://latimesblogs.latimes.com/ent...partnership-to-shake-up-pay-tv-landscape.html
In a deal that could transform the landscape for digital movie distribution, start-up pay-TV channel Epix is in serious negotiations to give Netflix exclusive online rights to films from its three equity partners -- Paramount Pictures, Lionsgate and Metro-Goldwyn-Mayer. The five-year arrangement would allow Netflix subscribers to watch movies such as "Iron Man 2," "Dinner for Schmucks" and this week's release "The Expendables" via the company's Internet streaming service, according to several people familiar with the situation.
The people noted that there are still outstanding issues that must be resolved before the deal can close.
Netflix is expected to pay Epix close to $1 billion in licensing fees over the life of the deal, bringing the channel closer to its goal of breaking even by 2011. Earnest discussions have been ongoing for several months.
The agreement would make Netflix, best known for its DVD-by-mail business, a potentially formidable competitor to Time Warner's dominant pay channel Home Box Office, which has movies from Warner Bros., 20th Century Fox and Universal Pictures. As more people watch Internet content on their televisions, Netflix has been investing huge amounts of money to acquire content for its streaming video service. It already has a deal with Liberty Media's pay channel Starz, which brings it movies from Walt Disney Studios and Sony Pictures. Netflix also recently acquired exclusive pay-TV window rights for films produced by Relativity Media.
Among the issues the two companies are discussing is when exactly Epix would allow Netflix to start streaming its movies. One person familiar with the matter said it would be at some point after Epix starts airing new movies, typically several months after they launch on DVD.
