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DirectTV Signs Movie-Financing Deal With A24

DAVID GREENE, HOST:

NPR's business news begins with a new name in Hollywood.

(SOUNDBITE OF MUSIC)

GREENE: Satellite TV operator DirecTV has signed a $40 million deal with independent film studio A24 Inc. to help finance new movies. In return, DirecTV gets exclusive rights to air the indie films on-demand for 30 days before they hit theaters.

A24's biggest hit to date is the James Franco film "Spring Breakers," which made over $14 million domestically. The catch though, major theater chains, like Regal and AMC, will not show films that have previously released as video on-demand. Transcript provided by NPR, Copyright NPR.