Netflix is expanding the amount of content available for streaming during the pay TV window, with a new deal for movies from indie production and distribution house FilmDistrict. With the deal, Netflix nabs more movies that would otherwise go to premium cable networks.
Beginning in 2011, FilmDistrict will start making its films directly available to Netflix streaming customers, instead of distributing them through cable channels like HBO or Showtime. The first films to be included in the deal are the crime drama Drive, starring Ryan Gosling and Carey Mulligan, and the sci-fi thriller Lockout, which stars Guy Pearce.
The move comes as Netflix is looking to get more exclusive content in the pay TV window, essentially cutting premium cable networks out of the distribution of video content. The subscription video firm has gotten more aggressive in this respect, signing deals with Relativity Media and Nu Image/Millennium Films that gives it the rights to movies shortly after they are available on DVD.
Netflix also has rights to a good deal of content in the pay TV window through streaming deals with Starz and Epix. Those deals give Netflix access to films from Disney, Warner Bros., Paramount, MGM and Lionsgate films.
Nevertheless, it’s clear that Netflix’s streaming service is quickly becoming a competitor to traditional pay TV distribution. With about 17 million subscribers — two-thirds of which use its streaming service — Netflix can now match distribution of some major cable companies. Its streaming service is available on more than 200 different devices, including connected TVs and Blu-ray players from top consumer electronics manufacturers, TiVo DVRs, Roku broadband set-top boxes and mobile devices like Apple’s iPhone and iPad.
Netflix has also shown it’s not afraid to write big checks to secure content, committing to pay nearly $1 billion over the course of its five-year deal with Epix. That puts it in a unique position to offer an alternative source of streaming content, as cable subscribers seek to find new, less costly forms of entertainment.
Image courtesy of Flickr user Scott Feldstein.
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