Netflix has signed a deal with DreamWorks Animation SKG Inc. to stream its movies and TV specials beginning in 2013.
Netflix Inc. on Monday said that the multi-year licensing deal will make it the exclusive subscription TV service for first-run films and select television specials from the Glendale film company. Financial terms of the deal were not disclosed, but analysts estimate the deal for DreamWorks would be more lucrative than its current arrangement with HBO, roughly $30 million per picture.
DreamWorks movies include “Shrek," "Madagascar," "Kung Fu Panda" and "How to Train Your Dragon." Under the deal, new titles will be made available for Netflix members to watch instantly over pay TV on multiple platforms, including television, computers, mobile phones and tablets. Certain titles also will be made available to all Netflix streaming service members over time.
"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,” DreamWorks Chief Executive Jeffrey Katzenberg said in a statement.
Netflix, which has roughly 24 million members in the United States, has taken a hit in recent weeks after first raising prices, and then separating its DVD-by-mail and its streaming services into separate businesses.
DreamWorks shares were up 11 cents, or less than 1 percent, to $18.85 in midday trading on the Nasdaq.