A new movie licensing agreement has been agreed upon by Netflix, which is the country's largest mail-order and movie-rental service, and Time Warner Inc's Warner Bros, under the terms of which the studio would be given 28 days to sell new releases before customers can order the DVDs.

The Los Gatos, California based Netflix will now be getting new releases from Warner after 28 days, in addition to gaining expanded access to catalog titles for rental and online viewing. The details were confirmed by both the parties involved.

Financial terms of the agreement have, however, not been disclosed yet.

Netflix feels that the deal it has managed to strike with Warner could be a model for other rental services which are looking to reach upon agreements with studios which are facing a decline in DVD sales. By giving the nod to a 28 days window, the firm will get lower prices for the DVDs, but it will have more to spend on viewing material that can be streamed digitally to PCs, web connected television sets and gaming consoles.

"It can be a good deal for Netflix in terms of product costs coming down. Is it a good deal for Netflix subscribers? Probably not", said Todd Greenwald, an analyst with Signal Hill Capital Group in Baltimore while rating the stock of the company as "hold".