NETFLIX TO START STREAMING NEW FILMS

Until now, virtually all of the films available via Netflix’s streaming service have been older films akin to those that are usually found in the bargain bins at retailers. Now that is about to change. Netflix announced today its first “groundbreaking deal to stream first-run, studio-quality theatrical movies” to its subscribers. Ted Sarandos, chief content officer for Netflix, confirmed a report by TheWrap.com that his company had signed a deal with Relativity Media, whose recent films include, Brothers, Fast and Furious, Burn after Reading, Mamma Mia!, Pineapple Express, and You Don’t Mess with the Zohan. The deal will, in effect, treat Netflix like a cable or satellite pay-TV partner. In a statement, Relativity chief Ryan Kavanaugh said, “This clearly is a natural step in the evolution of the movie business and opens up a whole new world of revenue and marketing opportunities.”