The NYT is reporting that Netflix has cut a deal with start-up pay-TV channel Epix that will give it exclusive rights to steam Paramount Pictures, Lionsgate and Metro-Goldwyn-Mayer films. What does this mean for you? If you have Netflix, you’ll be able to stream movies like ‘Iron Man 2’ three months after they appear on pay television.
The deal is described, albeit more politely by the NYT, as a f*** you to cable and satellite providers who were reluctant to carry the Epix channel.
Epix has the rights to films from Paramount, Lions Gate and MGM. But in a crowded marketplace, the service has gained very little distribution on cable and satellite systems, making it invisible to most consumers. Viacom, one of the owners of Epix, disclosed last week that the joint venture continues to lose money, though it said that the service is moving closer to the break-even point.
The Netflix deal is a way to partly circumvent the cable and satellite carriers — and stem the financial losses.