Netflix Fights Back; Grows Streaming Library

Netflix article updated with additional information on Netflix earnings report and its streaming library, and insight on competitor Coinstar.

NEW YORK (TheStreet) -- Netflix(NFLX) announced a deal on Tuesday that will broaden its library of streaming movies. The news comes as the movie rental retailer struggles to maintain its superior footing.

Netflix entered into a multi-year deal with Epix, a joint venture between Viacom(VIA), Metro-Goldwyn-Mayer Studios and Lions Gate Entertainment(LGF).

Netflix will begin streaming movies to customers on Sept. 1.

EPIX has subscription pay TV rights to new releases and movies from the libraries of its partners and will make these movies available to Netflix 90 days after their premium pay TV and subscription on demand debuts. Historically, the rights to distribute these films are pre-sold to pay TV for as long as nine years after their release.

The deal will nearly double the size of Netflix's streaming library, Citibank analyst Mark Mahaney estimates. Currently, Netflix has about 20,000 streaming titles, with only 9% of its most popular movies available via streaming.

Combined, Paramount, Lions Gate and MGM have about 20,000 titles, though it is unclear if all of these movies will be part of the EPIX deal, Mahaney wrote in a note.

The financial terms of the deal were not disclosed.