Netflix, DreamWorks Animation ink exclusive distribution deal
By Sean O’Connell
Hollywoodnews.com: After weeks of bad news, Netflix finally has something positive to report.
The video-streaming service inked a deal with DreamWorks Animation to stream DWA films and TV specials, the New York Times reported late Sunday night. Analysts scanning the deal estimate that it’s worth “$30 million per picture to DreamWorks over an unspecified period of years.” Both parties are describing it as “the first time a major Hollywood supplier has chosen Web streaming over pay television.”
“We are really starting to see a long-term road map of where the industry is headed,” said DreamWorks CEO Jeffrey Katzenberg. “This is a game-changing deal.”
Or, at the very least, a large foot in the door for other studios looking for new distribution options for their product.
“You’re seeing power moving back into the hands of content creators,” Ted Sarandos, Netflix’s chief content officer, added. “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.”
This win comes after a series of losses. As the Times reports, Netflix will lose the right to stream Disney and Sony content in February “as a result of a failed renegotiation with the premium cable channel Starz.” And the service still is trying to put out fires from the announcement that it’s dividing its streaming and DVD-rental companies into separate companies.
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