Netflix in Million Dollar Movie Licensing Deal with Epix
Customers of Netflix on-demand services are in line to be able to download and watch movies distributed by Lionsgate, Mero-Goldwyn-Mayer and Paramount Pictures as part of their subscription with Netflix. According the LAT Epix is in talks with Netflix to give them exclusive rights to films from its three partners - Lionsgate, Mero-Goldwyn-Mayer and Paramount Pictures. The cost of the deal to Netflix will be close to $1 billion in licensing fees, and will put Netflix in the same league as Time Warner which sources their movies from Universal Pictures and Warner Bros., 20th Century Fox.
The five year deal is to see Netflix 15 million subscribers have access to the latest movies distributed by these companies. Movies like as "Iron Man 2," "Dinner for Schmucks" and this week's release "The Expendables" would be available for download soon after release. How soon is still being discussed, “One person familiar with the matter said it would be at some point after Epix starts airing new movies, typically several months after they launch on DVD.”