May 17, 2011
Netflix, Miramax Reach Streaming Movie Deal
Netflix and Miramax announced a multi-year deal that will give the movie rental service permission to stream hundreds of titles over its instant-viewing service.
US Netflix subscribers will be able to instantly watch motion pictures from Miramax's extensive film library, the two companies announced on Monday.
The Wall Street Journal reported in March that Miramax and Netflix were close to a five-year deal worth more than $100 million.
The agreement comes as media execs are now looking to expand their businesses to include streaming content that they say will help their business rather than destroy it.
This is the first time Miramax titles will be available through a digital subscription service.
The Miramax titles will start rolling out through Netflix beginning in June. Netflix will add dozens of movies on a rotating basis.
Miramax has released many blockbuster hits over the years and includes titles such as "Pulp Fiction," "Good Will Hunting," and "Scream." The movies will be able to be viewed on multiple platforms, including TV, computers, and mobile phones.
"Netflix is thrilled to enter into this deal with the new team at Miramax," Netflix Chief Content Officer Ted Sarandos told AFP.
"Existing relationships with management and a shared affinity for these great films make this an important deal for both companies and for our members, who will enjoy instantly watching movies from one of the truly great film libraries for many years to come," he said.
Investor group, Filmyard Holdings LLC bought Miramax from Walt Disney Co. last year for $660 million. The company said in order to earn back its investment it is aggressively seeking distribution deals in both old and new media.
Financial terms of the new deal were not disclosed, but it marks a milestone for Filmyard Holdings' investors Ron Tutor and Tom Barrack.
Netflix has more than 23 million Internet service subscribers in the US and Canada. The new deal will both allow Miramax to earn extra revenue in a new outlet on older titles, and also give Netflix subscribers more titles to choose from.
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