Netflix, the dominant subscription video-streaming service, has agreed to a multi-year deal with DreamWorks Animation SKG to obtain original programming to lure subscribers.
It is the largest contract for original content in the history of Netflix, the company said in a statement. The deal covers more than 300 hours of new programming, including shows inspired by characters from DreamWorks Animation's franchises, new feature films and its Classic Media library. DreamWorks Animation movies include "Shrek," Madagascar," "Kung Fu Panda" and "How to Train Your Dragon."
The first series are expected to be streamed in 2014 and will be available in all of Netflix's territories, according to the statement.
Like all of Netflix's offerings, the new DreamWorks programming under the deal will compete with commercial TV for viewers -- but unlike commercial TV, will carry no advertising.
CEO Reed Hastings has recovered momentum he lost two years ago after pricing and product missteps, by adding original shows and exclusive studio deals. Netflix previously revived "Arrested Development," the comedy show that was canceled by Fox in 2006, as it bets on original programming to fend off competitors like Amazon.com. It is currently promoting its original drama "House of Cards" to Emmy voters.
~ Bloomberg News ~