Finally, some good news for Netflix. The movie rental giant, which has found itself out of favor with consumers lately, just signed an exclusive deal to stream Dreamworks Animation titles.
The new deal comes at the expense of Netflix rival HBO, who was outbid by the former. Netflix will begin streaming Dreamworks Animation titles in 2013, and will offer both new films and catalog titles such as Kung Fu Panda.
Besides the higher cost Netflix was willing to pay for content, Dreamworks may have also chosen to forge the agreement based on the fact that Netflix will allow it to continue selling digital downloads of the licensed titles.
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HBO’s agreements with its studio partners preclude such sales.
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Is this finally a step in the right direction for Netflix? Or, to paraphrase a line from Star Wars, is 2013 too remote to make an effective demonstration? Hit the comments and let us know what you think.
(via GigaOM)
This news is almost irrelevant to a Netflix customer like me right now. 2013 is light years away. If they had news about something that was going to be added to the streaming collection in the next few MONTHS, that would be exciting.
This is good news for Netflix subscribers. While Dreamworks itself won’t add enough titles to tip the balance, this deal and the one with Discovery Networks last week show that Netflix is being aggressive to make deals for new content. The loss of Starz is a blow, but more of a PR one than a substantive one — I would think that many people are like me and use the catalog titles and TV shows and not necessarily the “new releases”. At under $10 a month, Netflix has been, and continues to be, a remarkable value. Hope they can continue to add content and keep the price below double-digit-dollars.
This is a big victory for Netflix. They said they were going to go after the same content as HBO. They are looking to out bid HBO for the rights to Warner Brothers next. If they get that, watch out. This is a great example of how Netflix can survive in the streaming business. If allowing Dreamworks to sell digital downloads of their movies is what sealed the deal, then the rest of Hollywood should take notice. I bet this deal will even help sell digital downloads and physical media.