Netflix Snags Streaming Deal With DreamWorks Animation

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DreamWorks Animation has struck a deal with Netflix to provide its movies and television specials to the now somewhat independent streaming giant. DreamWorks chose Netflix over a deal with HBO, with both DreamWorks and Netflix citing the deal as the first time a major Hollywood supplier chose a Web platform over pay television. Analysts estimate the deal is worth over $30 million per film to over an unspecified number of years to DreamWorks. Netflix chief content officer Ted Sarandos comments on DreamWorks’ move from pay television to Web streaming:

“You’re seeing power moving back into the hands of content creators. When a company like DreamWorks ends a long-running pay TV deal — when a new buyer in the space steps up — that’s a really interesting landscape shift.”

The addition of DreamWorks may be a big step in Netflix pushing through all of its recent negative attention and content loss, as Netflix recently lost a ton of content when their deal with Starz ended, and many people are viewing the Netflix and Qwikster split as a portent of content doom for the company. However, Netflix will begin streaming DreamWorks’ content starting in 2013, over an entire year away. It should be noted, according to CNET, that HBO allowed DreamWorks out of its contract two years early — obviously not broken up over the matter.

(The New York Times via Techmeme)


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