Netflix strikes movie deal with Weinstein Co.

(AP) -- Netflix has locked up the right to show "The Artist" and other movies from The Weinstein Co. on its Internet video service before the films are released to the leading pay-TV channels.

The multiyear deal announced Tuesday stocks Netflix with more artillery in its home entertainment battle versus premium cable channels, such as HBO and Showtime, and Internet video services provided by Amazon.com Inc. and Wal-Mart Stores Inc. . CEO Reed Hastings has identified .'s HBO as his company's biggest rival during the next decade.

Netflix sells an $8 monthly service that beams video to TVs and other devices with high-speed Internet connections. HBO also offers an Internet-streaming version of its service, but it's only available to consumers who pay for the cable-TV channel.

Getting the streaming rights to fare such as "The Artist," which is nominated for 10 Academy Awards, also may help Netflix keep its subscribers happy as other popular selections disappear from the service's video library. Netflix will lose the rights to stream many movies from . and other studios when a three-year licensing deal with the Starz Entertainment channel expires next week.

Netflix, which is based in Los Gatos, Calif., says it currently has more than 23 million Internet streaming subscribers in the U.S. and more than 40 other countries. The company also offers a DVD-by-mail rental service that has been losing millions of customers in recent months as Netflix has intensified its focus on the .

The Weinstein agreement will give Netflix some films within a year of their release in . Besides "The Artist," the deal covers foreign-language movies, documentaries and other films in the Weinstein vault. Financial terms weren't disclosed.

Netflix shares fell $2.35, or 1.9 percent, to $119.50 in Tuesday's afternoon trading.

©2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Citation: Netflix strikes movie deal with Weinstein Co. (2012, February 21) retrieved 28 March 2024 from https://phys.org/news/2012-02-netflix-movie-weinstein.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.

Explore further

Netflix vying for first rights to new TV series (Update)

0 shares

Feedback to editors