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Netflix Signs Distribution Deal for 'Watch Instantly'

 & Chloe Albanesius Executive Editor, News

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Netflix has inked a deal with Relativity Media to stream the studio's movies via Watch Instantly months after they are released in theaters.

Relativity has traditionally licensed its content to pay TV channels like HBO, Showtime, and Starz, but will now provide certain content exclusively to Netflix.

The first films from Relativity will hit Watch Instantly in early 2011, including The Fighter starring Christian Bale, Mark Wahlberg, and Amy Adams, which is scheduled to debut in theaters later this year. Also on tap is Nicolas Cage's Season of the Witch and Peter Farley's Movie 43 both of which will also hit theaters in 2010.

Relativity films currently in theaters include Robin Hood, Get Him to the Greek, and "Grown Ups, though Netflix did not say if those movies would be available via this deal.

Netflix said the deal marks a continued shift in the distribution of movies, and is the first time a feature film will stream via Netflix rather than debut on a paid TV station.

"Our continued goal is to expand the breadth and timeliness of films and TV shows available to stream on Netflix," Ted Sarandos, chief content officer for Netflix, said in a statement. "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."

"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," said Ryan Kavanaugh, Relativity's chief executive, in a statement.

The move comes several months after Netflix agreed not to rent new releases from Warner Bros. until 28 days after they go on sale. Netflix then signed similar deals with Fox and Universal in April.

About Our Expert

Chloe Albanesius

Chloe Albanesius

Executive Editor, News

My Experience

I started out covering tech policy in DC for The National Journal, where my beat included state-level tech news and all the congressional hearings and FCC meetings I could handle. I later covered Wall Street trading tech before switching gears to consumer tech. I now lead PCMag's news coverage.

My Areas of Expertise

Getting my start in DC means I still have a soft spot for tech policy; Congressional hearings can sometimes be as entertaining as a Bravo reality show, for better or worse. But PCMag is all about the technology we use every day, as well as keeping an eye out for the trends that will shape the industry in the years ahead (or flop on arrival). I've covered the rise of social media, the iOS vs. Android wars, the cord-cutting revolution that's now left us with hefty streaming bills, and the effort to stuff artificial intelligence into every product you could imagine. This job has taken me to CES in Vegas (one too many times), IFA in Berlin, and MWC in Barcelona. I also drove a Tesla 1,000 miles out west as part of our Best Mobile Networks project. Of late, my focus is on our hard-working team of reporters at PCMag, guiding and editing their robust coverage.

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