After Starz declared that it would no longer tie up with Netflix, the new shocker is Netflix signed a new deal with DreamWorks! The company has signed a deal with DreamWorks Animation, the animation studio behind blockbuster hits such as Madagascar, Kung Fu Panda and Shrek. DreamWorks passed on a similar deal with premium cable network HBO and went with Netflix instead.
However Netflix had lost Walt Disney Studios and Sony Pictures Entertainment in an earlier deal. Many speculate that this is just the start for Netflix. The deal is only with DreamWorks Animation alone and not with DreamWorks Studios which means only a handful of movies. The movies will be showing up on Netflix sometime in 2013 so there is some wait involved!
We are still unsure what movies will be streamed on Netflix at this time. Netflix is said to be paying some $30 million per title for three new franchises that will hit Netflix right after their release. Apart from that Netflix is also paying the same amount per title to stream DreamWorks Animations movies.
What Netflix needs is more such deals to make it in this market as Movie studios are continuously shutting doors on Netflix! There is weird sense in the market that the movie companies are plotting to kill Netflix. There was speculation going around that Netflix will die out in 2014 due to being chocked out of movies by Starz and HBO who are already loosing revenue due to Netflix’s unlimited streaming. Amazon is next in line but with the power of Amazon, we don’t think it will be hurt a bit.