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Indie Movie Studio Relativity (‘Dear John’) Bypasses HBO, Showtime and Starz; Signs Deal With Netflix Instead

Jul 7, 2010  •  Post A Comment

Independent film financing and production company Relativity Media has signed a five-year agreement to stream its movies through Netflix, skipping over the traditional run on pay-cable networks, the Los Angeles Times’ Company Town blog reports.

The move comes as pay-cable networks HBO, Showtime and Epix have snubbed Netflix’s streaming service by opting to keep their shows during the long windows during which they control the rights, the article says.

The deal marks the first for Netflix with a Hollywood film producer, after losing out to Starz for similar rights to films from Walt Disney Pictures. The agreement is akin to those made by pay networks to studios and could bring Relativity payments of up to $100 million a year, the article says.

"It would be my preference that the pay channels all supply us their films, but this is an example of the other way to get there, which is to compete with those guys," said Netflix’s chief content officer Ted Sarandos.

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