Miramax, Netflix ink streaming deal

Santa Monica-based Miramax and video rental service Netflix have signed a multi-year agreement, writes Socaltech.com.

The agreement will allow Netflix members to instantly stream motion pictures from the Miramax film library.

Financial details of the streaming deal were not disclosed. According to the two, the deal is the first time Miramax titles have become available through a digital subscription service.

Online streaming has become the fastest-growing source of new customers for Netflix, which now has almost 24 million subscribers.

The latest agreement comes as media chiefs are beginning to shift their public stance towards the fast-growing company by trying to convince investors that the video streaming service will expand their business rather than destroy it, says The Wall Street Journal.

Starting in June, Netflix will offer several hundred Miramax titles through its online streaming service to subscribers in the US and add dozens of movies on a rotating basis.

Netflix says the deal marks the first time Miramax titles are available through a digital subscription service.

Miramax's film library includes major titles such as 'The English Patient,' 'Good Will Hunting' and 'Pulp Fiction' as well as the 'Scream' movie franchise.

MarketWatch says while the video rental provider has a DVD and Blu-ray library of well over 120 000 titles, it must work towards offering a comparable catalogue of streamed content to keep up with ever-rising expectations among investors.

Analysts worry that the video-on-demand content offered by cable companies like Time Warner Cable and Comcast, along with the streaming products from Amazon.com, Hulu Plus and other new entrants, will slow down Netflix's growth.

Already, the stock, priced at more than 70 times its earnings, was punished last month when Netflix issued a second-quarter outlook that fell short of many forecasts.