Netflix shares briefly turned positive after the company announced the deal, a sign of how important having hit shows is to investors of streaming services.

"Seinfeld is the television comedy that all television comedy is measured against," Netflix Chief Content Officer Ted Sarandos said. "We can't wait to welcome Jerry, Elaine, George and Kramer to their new global home on Netflix."

Loading

Maintained popularity

While it's been more than two decades since the final episode of Seinfeld, the show has maintained its popularity thanks in part to a long run in syndication on TBS. Reruns of TV sitcoms are still generating large sums of money as younger generations discover them on streaming services like Netflix.

NBCUniversal recently paid $US500 million ($728 million) over five years for the rights to The Office, while WarnerMedia is paying $US425 million over five years to stream Friends on its upcoming streaming service, HBO Max.

Netflix paid "far more" for the rights to stream Seinfeld, according to the Los Angeles Times. This deal is different than the deals for The Office or Friends because it gives Netflix global rights.

Other programs still up for grabs include The Big Bang Theory and Two and a Half Men, but WarnerMedia's HBO Max may have the inside track to nab those shows. Both of those sitcoms are distributed by WarnerMedia.

Hulu had a $US150 million deal to stream Seinfeld, according to the Hollywood Reporter. It expires in 2021.

Bloomberg, with staff writers