Feeds

Netflix whisks DreamWorks deal from under HBO's nose

Dream contract to stream studio's movies

Boost IT visibility and business value

Troubled US streaming service Netflix has bagged a deal to start piping DreamWorks Animation movies to punters.

The studio's contract with US television channel HBO expires the end of 2013, but according to the FT, the film company's new agreement with Netflix will allow the streaming service to show some of DreamWorks' films before then.

Netflix and the studio, which gave the world Shrek and Kung Fu Panda, are billing the pact as the first time a major Hollywood studio has chosen internet streaming over pay TV.

The contract, which is estimated to be worth $30m per movie to DreamWorks, replaces the studio's previous relationship with HBO, according to a report in the New York Times.

"You’re seeing power moving back into the hands of content creators. When a company like DreamWorks ends a long-running pay TV deal – when a new buyer in the space steps up – that’s a really interesting landscape shift," said Netflix chief content officer Ted Sarandos.

"This is a game-changing deal," DreamWorks chief exec said in an interview. "We are really starting to see a long-term road map of where the industry is headed."

The deal should be a welcome boost to Netflix's fortunes, which have been flagging of late after its unpopular decision to separate its DVD and streaming rentals into two different websites and hike its tariffs.

Netflix expects to lose around a million of its 25 million US customers in the short term over the changes to its service. ®

Build a business case: developing custom apps

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.