Netflix Signs Major Licensing Deal with Epix

Netflix, the US DVD rental and online movie streaming company, has revealed that it signed a deal with Epix, a joint venture by major Hollywood studios, which would enable it to provide a much broader array of movies for its streaming service.

"Adding EPIX to our growing library of streaming content, as the exclusive Internet-only distributor of this great content, marks the continued emergence of Netflix as a leader in entertainment delivered over the Web," said Ted Sarandos, chief content officer for Netflix, in a statement.

"The EPIX deal is an example of the innovative ways in which we're partnering with major content providers to broaden the scope and freshness of choices available to our members to watch instantly over the Internet," he added.

The licensing deal will enable Netflix to stream movies that are available on Epix as well. The deal stretches for five years and is said to be worth $1 billion over the entire period.

Epix was created as a web platform to supplement cable offerings. The idea is to allow cable subscribers to watch the same movies as on their pay TV channels online as well. While the venture enjoys the support of three major Hollywood studios, Paramount, Lionsgate and MGM, it hasn’t proven extremely popular.

Under the deal Netflix subscribers would also be able to get access to the movies, but only 90 days after it hits the pay TV window. Add to this the DVD window and the waiting period becomes very long indeed.

Still, it adds a number of movies, the companies aren’t saying if all Epix movies will be available under the deal, to Netflix that wouldn’t otherwise be available.

Netflix is looking to move away from the DVD-rental business, which is still the main revenue generator, and towards online streaming. It has signed a number of licensing deal that would guarantee it more content though it has had to agree to some rather long delay windows.