DreamWorks and Warner Brothers Arriving On Netflix?
DreamWorks Animation and Netflix have come to a deal that will allow customers to enjoy DreamWorks content on Netflix's movie streaming service, according to the New York Times.
DreamWorks Animation reportedly dropped its impending deal with HBO and instead partnered up with Netflix. Analysts estimate that the Netflix deal is worth $30 million per title to DreamWorks over an unspecified period of years. This deal is momentous for being the first time that a content provider has chosen a web streaming service over a premium television channel.
DreamWorks agreed to this partnership because it feels Netflix streaming is the future of content delivery.
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Jeffrey Katzenberg, the animation studio’s chief executive, offered his thoughts on the deal: “We are really starting to see a long-term road map of where the industry is headed. This is a game-changing deal.”
The DreamWorks contract comes in the middle of Netflix's recent company woes. On Sept. 18, the company announced it would split up the Internet streaming and DVD services. Soon after, about 1 million of its 25 million customers in the United States are said to have dropped the services due to this abrupt change.
The company has lost about $8 billion worth over the last two months. Apple, Amazon, Vudu and a streaming service owned by Wal-Mart is also in direct competition with Netflix. The Dish Network recently announced a Blockbuster-branded streaming and DVD-by-mail service as well.
Netflix is expected to lose the right to stream Walt Disney Studios and Sony Pictures Entertainment content due to the company not reaching a new contract settlement with the premium cable channel Starz. Netflix's new deal with DreamWorks enables Netflix to replace the loss of content.
Beginning in 2013, Netflix will stream DreamWork's movies such as "Madagascar", "Kung-Fu Panda", "Shrek" and "Megamind." The studio is also planning three new movie releases for 2013: "The Croods", "Turbo" and "Peabody and Sherman."
Netflix is also said to be pursuing other licensing agreements with other film companies. The company is reportedly in discussion with Warner Brothers about putting its television programs on its streaming service.
