Netflix and Lionsgate UK jointly announced a new multi-year licensing agreement Monday, making Netflix the exclusive subscription streaming service in both the United Kingdom and Ireland for first-run films produced by Lionsgate.
Lionsgate UK titles will be available to Netflix subscribers beginning in early 2012.
Lionsgate is an important and successful supplier of television series and movies to us in all of our territories, Ted Sarandos, Netflix Chief Content Officer, said in a statement. We are proud to be the exclusive Pay TV home for Lionsgate theatrically released films in the UK and Ireland.
Lionsgate UK, a subsidiary of Lions Gate Entertainment, also praised the deal.
Netflix is the leading worldwide brand in streaming movies and they have an incredible service in North America, Lionsgate UK CEO Zygi Kamasa said in the statement. We are very excited to be working with them as they launch their service and bring our movies to audiences in the UK and Ireland.
Netflix has struggled recently as the company faced backlash over the splitting of the DVD mail service and online streaming portion of the company, which resulted in price increases of about 60 percent for those who wanted both services. Although the company backtracked on its decision to split the services, the price increases are still in effect. In the third quarter, the company announced that it had lost 800,000 subscribers.
Lions Gate Entertainment has also struggled recently, as the company announced last week a net loss of $24.6 million in its fiscal second quarter. The company was dragged by less-than-stellar performances at the box office.
Shares of Lions Gate Entertainment are down 0.47 percent to $8.53 at mid-morning trading.