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Netflix lands deal for DreamWorks movies, snubs HBO

updated 10:35 pm EDT, Sun September 25, 2011

Netflix gets DreamWorks movies for 30m

DreamWorks late Sunday revealed that it had struck a deal with Netflix to provide its animated movies. The deal, unofficially estimated by a consensus of NY Times analysts to be worth $30 million, will bring movies like Monsters vs. Aliens or the Shrek series to the streaming service. It's not evident how long the deal will last other than multiple years, starting in 2013.

The deal is an important milestone for DreamWorks as it comes instead of a deal with HBO. CEO Jeffrey Katzenberg is effectively voting that the Internet video option is both more accessible and more profitable.

On Netflix's side, the pact would be a form of retaliation for Starz's decision to pull content from the service next year. Although DreamWorks won't be an option until a year later, it could put pressure on Starz to come back. The once longstanding Starz deal was Netflix's key to getting Disney and Sony movies, and having DreamWorks would tell Stars and its partner studios that they might be leaving money on the table by trying to protect legacy TV deals.

An agreement is also following at a crucial moment, just as Netflix is splitting off its DVD business and gambling that it can offer only Internet video. Competitors such as Apple's iTunes have DreamWorks video but, as pay-per-movie services, haven't had as much success. Netflix currently has about 64 percent of Internet movie share in the US, according to NPD data.



By Electronista Staff
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Comments

  1. juraiprince

    Fresh-Faced Recruit

    Joined: Feb 2006

    +9

    This would...

    ...be more exciting if it went into effect right away or even if it started in early 2012, but 2013? Yaaaaawn....!!!!

  1. facebook_James

    Via Facebook

    Joined: Sep 2011

    -7

    Yeah, right.

    Starz did not want to devalue its products by giving them away to Netflix for a lowball price.

    Dreamworks is willing to lowball its products. Good luck to them - suckers.

  1. rvhernandez

    Fresh-Faced Recruit

    Joined: Apr 2005

    +2

    Netflix? Netflix who?

    "Didn't they go out of business in 2011?" Quote from the year 2013...

  1. elroth

    Junior Member

    Joined: Jul 2006

    +1

    lowball?

    300 million dollars is not a lowball price (it was about 10 times the last deal between Starz and Netflix). Starz just did not want to be on Netflix.

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