Netflix has informed that it is going to add a special service for its customers and it is going to pay nearly $1 billion for this service.

The new service is films On-Demand and the Netflix customers can see films of Paramount Pictures, Lions Gate and MGM according to their wish. This will cost the company around one billion by which it will be authorized to add movies from these production house to its online subscription service.

However, Netflix has said that, the deal is quite an expensive and coup one for the company but it was needed for the customers.

Now the Netflix customers won't receive any DVDs by mail from the company, rather they will start receiving streams via the Internet. This service will be started from 1st of September this year. This has been informed by a to Netflix official in a statement.

The chief content officer for Netflix, Ted Sarandos has informed that although it was huge amount of money for the particular service but the company won't mind it.