Netflix has had somewhat of a tumultuous time of late, what with raising the prices and then splitting the two halves of its businesses apart from each other with the formation of Qwikster. But it’s not all been bad news. In fact, the latest announcement is a rather important one.
DreamWorks Animation Deal
Netflix has signed a deal with DreamWorks Animation (Shrek, Madagascar, Kung Fu Panda) which sees the former streaming the latter’s films and TV specials exclusively. As DreamWorks CEO Jeffrey Katzenberg states, “We are really starting to see a long-term road map of where the industry is headed. This is a game-changing deal.”
Netflix has had to pay a lot of money to secure this content (estimated at around $30 million per picture) but it adds more mainstream content to its line-up at a time when the company really needs to be showing the customers who have remained loyal that that loyalty will be rewarded.
From HBO To Netflix
You may be questioning the importance of this deal right now, but it’s important to remember that DreamWorks has ended its deal with HBO in order to forge this new deal with Netflix. That’s a switch from old media to new media right there.
HBO did actually allow DreamWorks out of its contract two years early prior to the latter making this new deal, which suggests the former wasn’t all that bothered to lose the content. But HBO’s loss, whether big or small, is Netflix’ gain.
Conclusions
This is a big deal, literally and figuratively. Not only because this is DreamWorks Animation, a huge company which releases hugely-successful movies, but because it represents a change in the industry.
It would be wrong to suppose all companies which produce content will now suddenly switch allegiance to the likes of Netflix and Hulu. Hell, some wont even accept that they represent a viable alternative. But the future is clear, and this deal validates that a sea change is occurring.
[Via The New York Times]
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