Shares of Netfilx (NFLX) rose 4.00% to $111.41, the most intraday since June 14, after the online movie rental service said it signed a long-term deal with Relativity Media for the license to stream its movies exclusively to Netflix subscribers during the “pay TV window.”
Under the agreement, which marks a continued shift in the distribution of major motion pictures in the U.S., Netflix subscribers will get access via the Web to contemporary movies at the same time as they would have appeared on premium pay TV channels such as HBO or Showtime.
“Our continued goal is to expand the breadth and timeliness of films and TV shows available to stream on Netflix,” said in a statement Ted Sarandos, chief content officer for Netflix. “Historically, the rights to distribute these films are pre-sold to pay TV for as long as nine years after their theatrical release. Through our partnership with Relativity, these films will start to become available to our members just months after their DVD release.”
NFLX gained 40 cents, or 0.37%, to $107.48 rtq. at 21:54 E.T. in Nasdaq composite trading.