LOS ANGELES — Netflix will pay nearly $1 billion over the next five years for the online-streaming rights to movies from Paramount, Lionsgate and MGM in a deal that could help Netflix attract subscribers.
The agreement announced Tuesday marks another breakthrough in Netflix’s bid to stock its online-streaming library with more compelling material, so it can keep its subscription service relevant as more households order entertainment through high-speed Internet connections. The online-streaming push also helps the company reduce its postage bill for mailing DVDs to its 15 million subscribers.
The deal also makes the three studios’ joint pay-TV venture, Epix, immediately profitable.
Viacom Inc.’s Paramount, Metro-Goldwyn-Mayer and Lions Gate Entertainment are selling Netflix the right to stream movies 90 days after they appear on the Epix pay channel.
