Netflix inks deal to stream more films
Netflix is turning more of its attention to direct streaming of films – and away from the mail.
In a deal set to begin September 1, the company will begin offering films from Paramount Pictures, Lions Gate and MGM to its online subscription service, according to published reports.
The New York Times described Netflix's strategy, quoting Chief Content Officer Ted Sarandos, as “taking the ‘huge pile of money' that Netflix pays in postage for DVDs by mail – about $600 million this year – and ‘and starting to pay it to the studios and the networks.'”
“Nobody likes rate increases or reduced delivery, but as part of a total restructuring plan, we believe it is necessary to save the Post Office,” Steve Swasey, VP of corporate communications for Netflix, told DMNews last month.