Netflix has inked a deal worth $1 billion over the next five years for the streaming rights to films from three of the biggest Hollywood studios.
According to news agency Reuters, Netflix has made a deal with the Epix pay TV channel, which is owned by Paramount, Metro-Goldwyn-Mayer Studios and Lions Gate Entertainment.
The deal will boost Netflix's online content by allowing its users of its 'Watch Instantly' service to stream all films produced by the studios over their high-speed internet connections.
Netflix first launched its Watch Instantly video streaming service in 2007. At launch, many customers complained that they could only watch older titles, as Netflix had not managed to obtain streaming rights to the new ones.
Analysts believe that the move could put immense pressure on cable and TV studios to offer more compelling services to compete with this new breed of online movie and TV show streaming services, in order to catch the attention of the online user.