While Netflix has enjoyed a close relationship in the past with indies-any film company that isn't one of the six major Hollywood studios-some smaller producers are asking the same question being raised at the majors: is Netflix friend or foe? With Netflix's content supply starting to appear in jeopardy, word leaked to The Wall Street Journal that the company was about to close a $100 million deal for 700 movies from Miramax, the legendary indie studio that produced such classics as "Shakespeare In Love" and "Sex, Lies, And Videotape." That seemed to calm shaky nerves on Wall Street and among the media. Some Hollywood bosses have said they aren't comfortable with Netflix's rapid rise. Netflix's Watch Instantly service is seeing white-hot growth and managers are trying to stoke interest by acquiring more material to stream.
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Showtime and Starz, two-high profile pay-TV services that supply Netflix, the Web's top video-rental service, with popular TV shows and films, announced that once their contracts ended they would reduce the amount of content they provide for Netflix's streaming service.
The company's founder says Netflix is now important part of film distribution. 'My Girlfriend's Boyfriend,', an indie film that appears on Netflix, is distributed by Gravitas Ventures. Independent films have always been a valuable source of content for Netflix, but rarely was it more important than during a public relations crisis two weeks ago.
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