Netflix has reached a new deal with the Amazon.com video streaming giant that could significantly increase the amount of money Netflix makes from its new streaming service, The Hill reported Monday.
Under the deal, Netflix will make up to $10 billion a year from the sale of its streaming service to Amazon, according to sources familiar with the deal.
The deal will create a $25 billion-a-year company that will also be able to pay for the purchase of additional streaming rights and other fees for its services.
The deal will be approved by a majority vote of Netflix shareholders.
Netflix shares are up nearly 17 percent on the news, and Netflix has more than tripled its market value over the last year.
The news comes a week after Netflix revealed its second-quarter results, which beat Wall Street expectations with $6.9 billion in revenue, a 4 percent increase from the first quarter.
The company said its streaming subscriber base has grown to nearly 14 million, up 10 percent year-over-year.
Netflix also announced it will make a $1 billion investment into its content delivery network.
The $1.2 billion investment will allow Netflix to accelerate delivery of its content across a variety of devices including smartphones and tablets.