Netflix has been the first global streaming service to reach an agreement with the French film industry that will considerably shorten the time between theatrical and SOVD distribution.

Netflix will be able to display movies 15 months after they are released in theaters in the United States, reducing the previously enforced 36-month window by more than half.

“This agreement is a new step towards our virtuous integration in the unique French cinema ecosystem. It reflects both our constructive contribution to the AVMS negotiation process and our commitment to be part of the French cultural exception,” said a Netflix spokesperson on Tuesday.

“Netflix is now able to offer movies 15 months after their release in theaters. This is a significant improvement for our members who had to wait for 36 months until now. Netflix will however continue to promote an earlier window to better reflect consumers’ actual viewing habits.”

On a case-by-case basis, Netflix will be able to avoid a theatrical release entirely by premiering films directly online.

As part of the agreement, the streaming service must invest at least $45 million (€40 million) in a minimum of 10 local films each year that will be released in French theaters. There are further conditions, such as a diversity clause that requires Netflix to devote at least 17% of the $45 million to films with a budget of less than €4.5 million (€4 million).

Netflix may be one step closer to returning to the official selection of the Cannes Film Festival. Director Andrew Dominik indicated earlier this month that his next Marilyn Monroe film Blonde could be set in an out of competition berth on the Riviera, something the streamer hasn't done since 2017.

The regulation is the result of the European Union's Audiovisual and Media Services (AVMS), which has been updating windowing rules across the continent as well as addressing other issues in the broadcasting and streaming ecosystems.