DVD by mail giant, Netflix have gained the rights to stream more Hollywood movies from Fox and Universal. But it has to wait for 28 days after the DVD’s hit the streets before they can stream them online.

The deal was agreed Friday and the reason for the long delay before streaming is simply so the studios can wring out the maximum profits from direct sales before Netflix begin streaming them across the net.

So for instance, when monster hit movie “Avatar,” is released on DVD on April 22, there will be a four week window for those sales to rack up before Netflix can offer the alien blockbuster to their subscriber base. However, the studios will give Netflix access to DVD and Blu-ray discs at “reduced product costs, significantly more units and better in-stock levels,” says the company.

“As the home entertainment market continues to evolve, we’re exploring new and creative approaches to distribution with our key studio partners,” Ted Sarandos, Netflix’s chief content officer, said in the news release. “Our intent is to forge agreements that make sense for the companies involved and that, on the whole, improve the consumer experience and the movie ecosystem,” Sarandos said.

“We’re extremely pleased to have reached this mutually beneficial arrangement that will allow Netflix subscribers to continue enjoying Universal’s film content on DVD and Blu-ray,” Craig Kornblau, president of Universal Studios Home Entertainment, said in a statement.

Netflix have also agreed a virtually identical deal with Warner Bros. earlier this year.

The Netflix instant-streaming service is available not only on computers, but also popular consoles – Xbox 360, Sony PS3 and Nintendo Wii. They also have a presence on most tv connected devices known to man including TiVo DVR’s and the new Apple iPad.

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