HBO is out and Netflix is in.
With a bid of approximately $30 million per movie, Netflix put together the deal with DreamWorks Animation to send its movies and television specials through the streaming-video company. There was no mention of Qwikster, the company that Netflix is splitting off to handle its DVD-by-mail business, but speculation is that the new company will indeed be included in the DreamWorks content package.
The timing couldn’t be better for Netflix as they continue to struggle with several public relations snafus.
“This is one of the few family entertainment brands that matter,” said Ted Sarandos, Netflix’s chief content officer. “It’s also a signal to people that we are in no way moving away from movies. Our programming is just reflecting more and more what people want.”
This marks the first time a major studio inked a deal with a web-entertainment provider over a television network. In the past, companies like Netflix have always had to get the content after everyone else. When the deal is realized in 2013 with 3 movies planned for the year, we may start seeing other shifts towards internet-based entertainment companies.
“We are really staring to see a long-term road map of where the industry is headed,” said Jeffrey Katzenberg, CEO of DreamWorks, to The New York Times. “This is a game-changing deal.”