Shares of Divx Inc. soared Tuesday after the video technology company announced a distribution agreement with Sony Pictures Television Inc.
Sony said the deal was part of its attempts to find legitimate ways of distributing its content online.
Sony Pictures Television oversees digital distribution for parent company, Sony Pictures Entertainment Inc., responsible for selling major Hollywood titles including "Spider-Man 3" and "The Da Vinci Code" and TV shows including "Seinfeld" and "Married With Children."
JPMorgan analyst Paul Coster said the deal was a major endorsement of Divx and the first by a top level content provider.
He said Divx should benefit from "viral" or rapid distribution of its download system by other users.
Coster also said the deal marks a turning point for Divx, which he said was previously regarded as a platform for distributing pirated content.
Divx shares jumped $1.17, or 9.1 percent, to $14.01 Tuesday. Shares have traded in the last year between $11.35 and $24.45.The Associated Press January 8, 2008, 7:27PM ET