Netflix Announces Deal With Relativity (NFLX)

It appears that Netflix NFLX is giving the traditional movie channels a run for their money. According to Fast Company, the movie service is partnering with Relativity Media in order to bring "first-run theatrical releases from the production company to Netflix subscribers, just months after their release on DVD." This will be a boon for Netflix and its 13 million subscribers, who will now have access to Relativity-produced films before they're available on channels like HBO, Showtime and Starz. Empowered with new these new licensing rights, Netflix will be able to show Relativity's 14 upcoming films in the next 12 months -- and they'll able to do it before any of the premium channels. While Relativity isn't quite the biggest fish in the production game, Netflix has shown it has plans to break into this market. This initial step could herald a new direction for the company, with larger producers to come down the road. And it could signal a decline in the power of pay TV firms, which count on being the first to show new movies after their DVD release.