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Netflix inks deal with Relativity Media to stream major motion pictures

July 6th, 2010 at 8:07 AM

Netflix announced on Tuesday that the movie rental giant has signed an agreement with independent movie producer Relativity Media. Relativity Media is a newcomer to the movie production business, but the growing company has the backing of bigwigs like Lions Gate Entertainment, Sony Pictures, and Universal Studios. Under the agreement, Netflix would get the first rights to stream popular movies that are typically sent to premium cable channels like Starz, HBO, and Showtime following the movie’s DVD release. This arrangement is a major leap forward for online streaming as it is the first time a major movie producer has turned to online sources for movie distribution instead of traditional paid television. Netflix will be launching this preferred streaming with “The Fighter” and “Skyline”; additional movies are expected to be added in the future.

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