Netflix Inc reached a deal with ABC Television Group to add past episodes of popular shows Grey's Anatomy, Desperate Housewives and Brothers & Sisters to its online streaming service, the two sides announced on Wednesday.
ABC, a division of Walt Disney Co, will also make available to Netflix every episode of Lost and Ugly Betty, two shows that are no longer on the air. The deal also includes a number of programs from the Disney Channel, including Phineas and Ferb and Good Luck Charlie.
Netflix will not be allowed to stream current shows earlier than 15 days after initial telecast, under the terms of the agreement. Financial details were not disclosed.
Netflix, whose stock has jumped around ninefold over the past two years, is a leader in U.S. DVD rentals, with its service that sends movies and TV shows through the mail. But the company is increasingly pushing its streaming service, which has grown quickly and now accounts for one-fifth of U.S. Web traffic in peak hours [ID:nN01176614].
Shares of Netflix were down 1.9 percent at $186.25 in trading before the market opened.
(Reporting by Paul Thomasch; Editing by Lisa Von Ahn)