Tuesday, September 27, 2011

Netflix Celebrates Dreamworks Animation Deal


Don’t count Netflix out. The company has some celebrating to do as it announced a deal to stream Dreamworks Animation content. According to “Netflix signs pay TV deal for Dreamworks Animation”, the deal will start in 2013 and Dreamworks passed over HBO in favor of Netflix. HBO is a part of Time Warner Inc. whose CEO previously made it clear that he did not like Netflix and blamed the company for cable “cord-cutting”.

The announcement of the deal gave the company’s stock a 7% boost in Monday’s market. The article reports “Dreamworks CEO Jeffrey Katzenberg told The New York Times that the deal… was ‘game-changing’ and represented a bet that viewers would soon no longer make distinctions between content streamed on the Internet or through cable”.

The deal is “days after Netflix… sealed an agreement to broadcast TV shows from Discovery Communications Inc.” Both deals might be able to reverse some damage done by the price hike, loss of Starz, and spin off the DVD division. 

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