August 10, 2010 by staff 

Epix, Epix and Netflix, the mother of yesterday, are happy to talk. The two companies have confirmed a large business, which gives a face Netflix’s ability to project movies on pay-TV service in its streaming video offering.

The Los Angeles Times had reported earlier that Epix Netflix and would pay about 1 billion over the life of a contract for five years, it is not surprising that the announcement of the two companies did not mention the price, and only describes the covenant as a multi-year “one. It also seems a bit of a hedge in the statement, which said that Netflix does not get all the movies Epix-only” sets “them.

Still, it’s an important step for Netflix (NFLX), and certainly a good injection of cash for Epix, which has struggled to get a ride from traditional cable operators.

As I noted yesterday, this agreement may make Netflix more competitive with cable, but is not designed to threaten business in Hollywood on DVD. Netflix still will not be able to get the movies to consumers over the Internet to reach “Epix” window, which means it will have been available on DVD for some time before that. Epix is owned by three major studios, Viacom (VIA) Paramount, Lionsgate (LGF) and MGM-and none of them want to cut their dollar disc.

It is also important to note that the agreement is designed to appease current and would-Epix cable partners, through another window, Netflix subscribers will have to wait 90 days after the debut in films in Epix before these customers can get the films on the Web.

EPIX and Netflix Announce Exclusive Agreement for Internet EPIX To watch movies to Netflix MEMBERS

NEW YORK and BEVERLY HILLS, California, August 10, 2010 – EPIX ™ and Netflix, Inc. [NASDAQ: NFLX] today announced an agreement through which Netflix members can instantly see a series of new releases and titles EPIX’s Library heard on the Internet from Netflix. Movies of a multi-year agreement will begin streaming Netflix on September 1 and include films from Paramount, Lionsgate and MGM.
EPIX has the rights to pay-TV subscription of new releases and films from the libraries of their partners and make these movies available to Netflix 90 days after its premium pay television and subscription debut in demand . Historically, the rights to distribute these films are pre-sold to pay TV of up to nine years after their theatrical release.
For Netflix, the agreement is an important step in the creation of supply from the transmission company, adding that many popular movie titles of some of the major studios in the world. Adds significantly to a growing library of movies and TV shows that can be viewed instantly on TV sets across a range of leading consumer electronic devices capable of streaming Netflix and equipment.

For EPIX, the offer reflects the value of EPIX platform that since its inception, has provided new rights and flexibility to distribute its films. The agreement allows EPIX continue the distribution of popular content in a variety of platforms and preserve high-quality television, subscription to the demand and online window reserved for cable, satellite and telco TV partners.
“The addition to the collection of our growing EPIX streaming content, such as Internet-only exclusive distributor of this excellent material, marks the continued emergence of Netflix as a leader in entertainment delivered over the Web,” said Ted Saranda , director of content from Netflix. “The agreement EPIX is an example of the innovative ways in which we are partnering with leading content providers to broaden the scope and freshness of the options available to our members to instantly see through the Internet.”
Mark Greenberg, president of EPIX added, “Netflix is a very popular service and we welcome them as our newest partner distribution. We are very pleased to continue our mission of providing consumers the movies where they want to see them, the while meeting the diverse needs of cable, telecom and satellite operators. This agreement also underscores the enormous value of our offerings in the market. “

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