|| Author: Steven Hodson|Tags: , ,

Netflix signs deal with DreamWorks

It’s been a few rough weeks for Netflix given the uproar following its announcement to split the DVD business off to a separate company and let’s not forget the decision by Starz to not renew their deal with Netflix. Then to add insult to injury Dish Network announces a competitor that turned out to be not so much of one. Now in and amongst all this there was one ray of light as Netflix announced a really nice deal with Discovery Networks; even if it just US only.

But as the old saying goes – there’s always light at the end of the tunnel and it would seem that Netflix might finally be coming to the end of that tunnel with their announcement today that they have sign a deal with DreamWorks Animation that will see all of the company’s  films and television shows be pumped through Netflix rather than HBO; who DreamWorks had a previous distribution contract with.

The Netflix accord, which analysts estimate is worth $30 million per picture to DreamWorks over an unspecified period of years, is billed by the companies as the first time a major Hollywood supplier has chosen Web streaming over pay television.

It is also a bet by Jeffrey Katzenberg, the animation studio’s chief executive, that consumers in the near future will not distinguish between the two. “We are really starting to see a long-term road map of where the industry is headed,” Mr. Katzenberg said in an interview. “This is a game-changing deal.”

Ted Sarandos, Netflix’s chief content officer, added: “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.”

via New York Times

Glad to see something going Netflix’s way finally.