Netflix has signed an exclusive deal with Dreamworks Animation which will allow them to stream content from the studio to Netflix. The deal will allow Netflix to stream content from Dreamworks which previously supplied content to HBO. The contract was negotiated at approximately $30 million per Dreamworks film title.
The only drawback to the deal is that Netflix will be unable to stream content from Dreamworks until 2013. However, Dreamworks is planning 3 new movies releases that year which Netflix will undoubtedly get.
The deal is very appealing for Dreamworks because under their contract with HBO they were unable to sell digital downloads to other providers. Now under the Netflix contract they will still be able to sell those digital downloads while providing streaming content to Netflix. So the deal with Netflix is relatively “sugar coated” and will allow Dreamworks to keep profiting off their content.
According to Gigaom, Netflix doesn’t actually like to do exclusive deals it only does them when it has to compete with providers like HBO.
This deal could not have come at a better time as Netflix loses its deal with Starz, Netflix stock falls, and Netflix splits its streaming service and DVD service into separate parts.