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Netflix Adds More Major Studios to Rev-Share Roster

12 Jun, 2001 By: Hive News

Enhancing its industry support while feeding its growth, online DVD renter Netflix said on Tuesday it has entered into revenue-sharing pacts with the home entertainment divisions of Dreamworks SKG, Twentieth Century Fox and Universal Studios.

Through the revenue-sharing deals, Netflix will have direct access to new DVD releases and will be able to more quickly make them available to its 300,000 customers.

To date, Netflix has secured revenue-sharing agreements with the majority of studios and film distribution companies, which together account for 85% of the DVD home rental market.

Netflix is the first online renter of DVDs to secure revenue-sharing agreements with major motion picture studios and distributors.

DreamWorks, Fox and Universal join existing Netflix revenue-sharing partners Artisan Entertainment, Columbia Tri-Star Home Video, Lions Gate Films, USA Films and Warner Home Video.

Three-year-old Los Gatos, Calif.-based Netflix allows members to watch as many DVDs as they want for a flat fee of $19.95 a month.

"Through revenue sharing, we are able to reduce our up-front inventory expenditures, while increasing the number of copies we can order of each title as it is released on DVD," said Reed Hastings, co-founder and c.e.o. of Netflix.

"This has a positive impact on customer satisfaction because we are able toprovide the new releases that customers want, when they want them."

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