Feeds

Netflix whisks DreamWorks deal from under HBO's nose

Dream contract to stream studio's movies

Top 5 reasons to deploy VMware with Tegile

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. ®

Remote control for virtualized desktops

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
'Internet Freedom Panel' to keep web overlord ICANN out of Russian hands – new proposal
Come back with our internet! cries Republican drawing up bill
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
The total economic impact of Druva inSync
Examining the ROI enterprises may realize by implementing inSync, as they look to improve backup and recovery of endpoint data in a cost-effective manner.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.