Netflix inks U.K. indie deals

LONDON -- Momentum Pictures and Lionsgate U.K. will be among the first U.K. indie distribs to sign up with Netflix, which confirmed Monday that it will expand its services to Blighty and Ireland early next year. Netflix's confirmation of the European expansion comes after Daily Variety reported the news in July (Variety, July 15) that the company was planning a move to Europe following its announcement that it was entering Latin America. Although details of the deals with Momentum and Lionsgate have yet to be unveiled and confirmed by Netflix, the pacts are likely to see the two distribs inked in exclusive long-term deals for the service, whereby titles from the distribs will be available on the service during the pay TV window. The news comes after Netflix confirmed in August that it would be launching in Spain in the first quarter of 2012. Netflix's arrival in Blighty and Ireland next year heralds the fact that the digital landscape in the territory is changing at a fast pace. Rival VOD and subscription VOD service Lovefilm, which is owned by Amazon, has already inked long-term exclusive deals with eOne and Studiocanal, which will see titles from the distribs (such as "The Twilight Saga: Eclipse" from eOne and "Source Code" from Studiocanal) available on the service. Lovefilm has been upping its game to challenge BSkyB's monopoly of the U.K. pay TV market, and with Netflix's arrival in the territory next year, these players are opening up doors for the indies. Many indie distribs in Blighty had typically found terms that BSkyB had offered to be unfair as it has traditionally offered indies much smaller deals -- if any -- than it offered to the Hollywood majors. Lovefilm and Netflix's terms are believed to be a much more lucrative option for the indies, and look set to be a welcome relief for them as the DVD market continues to shrink. Contact Diana Lodderhose at diana.lodderhose@variety.com