In July rumors swirled that DreamWorks Animation SKG was rethinking its streaming arrangement with HBO and considering a move to Netflix. This week those rumors became reality. The two companies confirmed an agreement which will bring some of the studio's popular animated films to Netflix subscribers...eventually.
The exclusive multi-year deal, set to begin in 2013, will incorporate both new feature films and those culled from DreamWorks' considerable stable of past hits, such as "Kung Fu Panda" and "Antz."
"DreamWorks Animation is one of the few family entertainment brands that really matters," said Ted Sarandos, Chief Content Officer of Netflix, in a statement. "The studio is brilliantly creative, technologically innovative and incredibly successful at making films and TV shows that delight people of all ages."
Citing Netflix's "impressive track record for attracting high-quality content," Jeffrey Katzenberg, CEO of DreamWorks Animation, believes his company's work will fit right in. "This arrangement allows us to get more value for our content while giving us a greater degree of flexibility in how we distribute it across multiple platforms in today's evolving digital world," said Katzenberg.
Though neither party talked financials, The New York Times spoke with analysts who claimed the deal may cost Netflix up to $30 million per film.
Netflix's recent falling out with content provider Starz pulled the plug on a good deal of quality content. This new arrangement, though still two years off, has already provoked a positive response: the company's stock price is up slightly today. But when measured against the 57 percent drop it's experienced so far this year, that minor bump is negligible.
Netflix still expects to lose around one million subscribers this fall, in large part due to a 60 percent price hike for its DVD rental/instant streaming combo package and growing frustration with other unpopular business decisions. (via Home Media Magazine)
