Netflix signs DreamWorks Animation to a first-look streaming deal
Looking for some positive PR after their many recent controversies, Netflix today announced a new deal with DreamWorks Animation that would bring them exclusive rights to all the studios films starting in 2013. The deal is the first time a studio has opted for online streaming over pay-TV and DWA chief Jeffrey Katzenberg believes, "this is a game-changing deal."
DreamWorks had an existing deal with HBO until 2014 but were able to negotiate an early exit with the cable channel. Why so eager to push the deal ahead? Well, for one, DreamWorks looks motivated by the $30 million per film Netflix has agreed to pay. No matter the length of the contract, that's a staggering amount of money (no wonder Katzenberg called it "game-changing"). It also gives both DreamWorks some stability (and cash) as their distribution deal with Paramount expires.
For Netflix, there's the obvious PR boost. The service has been hammered by customers over the past few weeks for a price increase and then splitting up their DVD-by-mail and online streaming services into two separate companies. There were many reports of people canceling their service and the hope, obviously, will be that this will remind people that Netflix will stay aggressive in signing deal for exclusive streaming content.
The first films expected to be available under the deal are DWA's 2013 films, which now include THE CROODS, TURBO (about a snail with super fast speed) and PEABODY & SHERMAN. Films in the DreamWorks library will be available as well but at a later date.
|Source:||New York Times|