May 16 (Bloomberg) -- Netflix Inc. reached a multiyear agreement with Miramax Films, expanding its movie-streaming service to include titles such as “Pulp Fiction,” “The English Patient” and “Shakespeare in Love.”
The partnership gives Netflix the rights to several hundred titles from Miramax’s 700-film library, the companies said in a statement today.
Netflix gains quality films for its streaming service, which starts at $7.99 a month, including 83 titles that have garnered Academy Award nominations from the studio founded by Bob and Harvey Weinstein. The company, with more than 23 million subscribers, has agreements to stream programming from the Epix and Starz cable-television channels.
The Miramax accord is “an important deal for both companies and for our members,” Netflix Chief Content Officer Ted Sarandos said in the statement.
Netflix, based in Los Gatos, Calif, dropped $9.43, or 3.8 percent, to $237.09 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares have risen 35 percent this year.
Miramax has signed agreements with Lions Gate Entertainment Corp. and France’s StudioCanal to distribute its DVDs and Blu-ray discs in the U.S. and Europe. Weinstein Co. will develop sequels to films including “Bridget Jones’ Diary” and “Swingers.” Added to those earlier agreements, the Netflix deal puts Miramax on a path to becoming profitable, said the studio’s chief executive officer, Mike Lang.
“We basically see a path to paying off our investors,” Lang said in an interview with Bloomberg TV.
Miramax, formerly owned by Walt Disney Co., was acquired for $660 million last July by Filmyard Holdings, an investor group that includes Ronald Tutor and private equity firm Colony Capital LLC.
The Netflix deal is non-exclusive, and Miramax will seek out other digital distributors to provide its movies to subscription and pay-per-view services, Lang said. He mentioned Google Inc., Apple Inc. and Facebook Inc. as potential partners.
“We hope that our deal will send a signal to other players in the market to come on in,” Lang said. “It’s important to have multiple players, not just for Miramax but for the entire industry.”
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