Netflix, Inc. (NASDAQ:NFLX) has signed a deal with iPic Entertainment to show movies in its luxury theaters.
The deal between Netflix and iPic Entertainment will allow the streaming service to show its original movies in the company’s theaters. The deal will specifically let it show movies at the theater chain’s locations in New York City and Los Angeles.
Netflix’s deal with iPic Entertainment also gives it the option of showing its original movies in other theaters. This includes the chain’s 13 other locations and independent theaters. Details of the deal, including how ticket sales will be split, weren’t announced.
What is known about the deal between Netflix and iPic Entertainment is that it is good for 10 of the streaming services’ original movies. The deal can also be expanded to include more of its movies. The films’ presence in a theater could help convince people that the movies aren’t just cheap ones made for TV, reports The Wall Street Journal.
John Fithian, President and CEO of the National Association of Theatre Owner, told Fortune earlier this year that Netflix is a “grave threat to the movie business.” However, he also noted that customers “think that if a movie is available at home at the same time as the cinema, it must not be that good.”
Netflix’s deal with iPic Entertainment isn’t the first time that it has shown its movies in theaters. The streaming company also released Beasts of No Nation in 19 Landmark theaters when it came out last year.
NFLX stock was up 3% as of Wednesday afternoon.
