Netflix in Advanced Talks to Join the MPAA

It would mark the first time a non-Hollywood studio would be welcomed into the fold of the movie industry's top trade group.

Netflix is in advanced talks to become a member of the Motion Picture Association of America, sources confirm to The Hollywood Reporter.

The six major Hollywood studios, which make up the ranks of the top trade and lobbying org, could decide as early as Tuesday whether to allow the maverick move. It would be the first time in history that a non-studio has been granted membership to the MPAA., as well mark a defining moment for chairman-CEO Charlie Rivkin 18 months into his tenure.

It also comes as Netflix becomes a full-fledged member of the Oscar race after securing an unprecedented 15 nominations on Tuesday. Netflix chief Reed Hastings and chief content officer Ted Sarandos are intent on upping the company's profile as a legitimate force in the movie business, and joining the MPAA would further that goal.

Additionally, once Fox is merged with Disney, the MPAA will have one less member, meaning a loss of as much as $10 million-$12 million in annual dues. Other sources say the MPAA is courting other new members as well (Amazon could be a candidate).

Netflix and the MPAA have been in ongoing discussions, according to insiders. The two aren't strangers, and have worked together on copyright protection, a priority for Rivkin and his studio bosses and Hastings. Trade is another issue uniting studios and Netflix, as well as production tax incentives.

The streamer's focus on anti-piracy has begun to match the big studios with the burgeoning popularity of set-top boxes pre-loaded with customized open-source software that can be used to access pirated content. Netflix, as well as Amazon, have joined the studios in filing copyright lawsuits, and along with MPAA members, are part of the Alliance for Creativity and Entertainment.

However, Netflix's seat at the MPAA table could irk theater owners, many of whom won't carry the streamer's original films since Netflix doesn't abide by theatrical windows. The MPAA has stayed out of the windows debate, however.

The MPAA and the National Association of Theater Owners administer the ratings system together.

Politico Pro first reported the talks.