Netflix secures streaming deal with Dreamworks

Netflix has had a lot of bad news lately but today the streaming movie and TV show service has secured a new deal to offer movies from the major Hollywood film studio Dreamworks. The New York Times reports that Netflix paid $30 million for the deal which gives them the rights to stream movies from Dreamworks over a unnamed period of years. The movies, as well as television specials, will become available for Netflix customers starting in 2013. The deal replaces one that Dreamworks previously had with the HBO cable TV network.

Netflix has seen a lot of bad press lately, mostly due to the decision earlier this month to split its streaming video group and its DVD mail rental division into two separate companies. However Dreamworks' CEO Jeffrey Katzenberg is quoted as saying that he supports Netflix's move, saying the company made, " ... a very tough and very strategic call that will ultimately prove to be the right one for long-term success."

Netflix may be making a move to secure more licensing deals like the one with Dreamworks to help replace one that it will be losing in a few months. Netflix was unable to secure an extension of a previous agreement with the Starz pay cable TV network to stream its movies and TV shows. That deal is expected to end on February 28, 2012. Netflix still has a deal to stream movies from the Epix cable TV network which shows new and classic movies from the Paramount, Lionsgate and MGM movie studios.

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13 Comments

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how come itunes and apple dont' step up and overbid netflix at every step to secure this streaming content? I feel like with all their money, apple can easily take away all these networks from netflix.

those networks that just don't want to stream their shows and movies are going to die sooner or later if they refuse to change their policies.

It's ashame they can't match their online content with their offline content. It's not their fault of course. They've done a really bad job alienating their customer base without properly explaining the reason for the price hikes.

I got rid of my streaming from them a few weeks ago...packing up the Wii to sell it now with no future intentions of getting streaming again either.

2013?????????? WTF? I do not even know if I would still be alive by 2013. Not only that, but I can guarantee you by 2013 Dreamworks will BREACH their contract.

speedstr3789 said,
starting 2013? You can lose a lot of customers by then or another service could be popping up with better selections by then

Possibly, but for another service like Netfilx to get better selections, they would have to convince some of these studios (who are backing out of deals with Netflix) to give them reasonable deals. The thing is, I don't see Starz (who were offered 10x what their previous contract was worth to extend it, and still turned it down) making that kind of deal with anyone. Their refusal to extend their Netflix contract leads me to believe that they simply don't want to negotiate with streaming companies anymore. Many of the other major studio groups are already in exclusive contracts with Netflix.

speedstr3789 said,
starting 2013? You can lose a lot of customers by then or another service could be popping up with better selections by then

I agree -- I'm not bailing yet myself as I do like the streaming service, but they're hemorrhaging subscribers, and there's going to be similar services. Might be a case of "too little, too late".

Max Norris said,

I agree -- I'm not bailing yet myself as I do like the streaming service, but they're hemorrhaging subscribers, and there's going to be similar services. Might be a case of "too little, too late".

So far Netflix has lost 4% of its subscribers, I would not call that a hemorrhage, however, things could get worse but my guess is that most will realize that Netflix is still a great deal and will keep some portion of the service.

Hey 4% is a pretty big deal. I kept the DVD service for now. Not that anyone cares. Why should studios even use a middle-man like Netflix or Blockbuster? They could make more money streaming movies themselves.

The movies, as well as television specials, will become available for Netflix customers starting in 2013.

....

Buttus said,
yea, when i read the title, my hopes went up, but 2013? i dunno...
i'm keeping it for now, but it's still iffy...

The article could have been enough if they have written: Netflix to get dreamworks by 2013.


I'm guessing that's when the contract between dreamworks and HBO ends.