It’s been a rough month for Netflix, which faced a million-subscriber loss when its price hike went into effect and some serious backlash from the Qwikster split, but there’s finally some good news coming out of the streaming company. Netflix announced yesterday that it had signed a deal with animation studio DreamWorks.
The deal, which analysts estimate to be worth $30 million per picture to DreamWorks over an unspecified period of years, according to The New York Times, replaces a similar agreement that DreamWorks had with HBO. The companies are billing their new deal as the first time a major studio has chosen Web streaming over pay TV.
DreamWorks head Jeffrey Katzenberg also claimed that consumers are distinguishing less between streaming and premium cable. “We are really starting to see a long-term road map of where the industry is headed,” he told the Times. “This is a game-changing deal.”
Apart from a more lucrative per-movie deal, DreamWorks is getting another perk from switching over to Netflix. While HBO won’t permit its partners to sell digital downloads of movies during its exclusive window, Netflix won't restrict DreamWorks' digital sales.
According to the Times, HBO—which let DreamWorks out of its contract two years early—won’t miss the animation studio too much. HBO’s current studio partners are making more animated films, and it recently signed a contract with Summit Entertainment, the studio behind the Twilight series.