Netflix Takes on Movie Channels

10:30 AM -- Netflix Inc. (Nasdaq: NFLX) has signed a deal with Hollywood production company Relativity Media that gives it the exclusive right to show Relativity's upcoming titles through its "Watch Instantly" streaming feature during what would normally be the pay-TV window.

The move could put Netflix into competition with the premium movie channels, such as HBO and Showtime, according to The Wrap's Sharon Waxman, who broke the story.

"The arrival of Netflix as a player in this space could change the balance of power between HBO and Showtime and the major studios when they look to renegotiate their deals, which come due starting in approximately 2015," Waxman wrote.

However, others -- like AllThingsD's Peter Kafka -- remain more skeptical, pointing out that Relativity doesn't have the licensing rights for many of its bigger hits, like 300 and Bruno. In fact, this deal only covers 14 titles for this year, the highlight of which seems to be The Fighter, which stars Mark Wahlberg and Christian Bale.

— Erin Barker, Digital Content Reporter, Light Reading Cable

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