Netflix Pay TV : New Deal Brings DVD Rental Service To New Market

Netflix has signed an attractive deal with production company, Relativity Media, which will pit the DVD rental service directly against the likes of HBO, ShowTime and Starz in the Pay TV segment.

According to the deal, Netflix has gained exclusive licensing rights to all movies that are distributed by Relativity Media. To put this into perspective, this will mean Netflix subscribers may get exclusive access to nearly 14 upcoming movies including “The Fighter”, “Catfish” and “Season of the Witch” over the next 12 months.

Such a deal has so far been inked only among Pay TV companies and have brought close to $100 million a year to each of the movie studios. Also, such exclusive licensing rights are valid for several years which means Netflix can now offer these premium movies to its subscribers which it could not until now.

An official announcement in this regard is expected to be made on Tuesday.

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