Internet Video

Netflix To Stream DreamWorks, Amazon Adds Fox

9/26/2011 10:34 AM Eastern

Netflix inked a pact with DreamWorks Animation SKG giving it exclusive pay-TV distribution rights for first-run films starting with the studio's 2013 lineup, while Amazon.com landed a deal with Twentieth Century Fox to provide movies and TV shows to bring its Amazon Prime streaming service to more than 11,000 titles.

Financial terms of the agreements were not disclosed.

Netflix -- which has suffered a customer backlash over its decision to split DVD and streaming plans -- is trying to bulk up its streaming content, particularly given that its agreement with Starz Entertainment expires Feb. 28, 2012.

DreamWorks previously had an output deal with Time Warner Inc.'s HBO. Netflix will pay approximately $30 million per movie under its deal with DreamWorks, whereas HBO was paying $20 million, The New York Times reported.

HBO had no intention of renewing the DreamWorks deal, which was originally set to run through 2014, according to a source familiar with HBO's plans. The premium cable network let the studio terminate the contract two years early, in 2012.

Under the multiyear licensing agreement with DreamWorks, Netflix members will be able to watch new DreamWorks Animation titles beginning with 2013 feature films in the pay TV window on multiple platforms, including TVs, tablets, PCs and m24's Jack Bauerobile phones. Eventually certain other titles -- including Kung Fu Panda, Madagascar 2, Chicken Run and Antz -- will also come to Netflix.

"Netflix has emerged as an innovative brand with an impressive track record for attracting high-quality content providers to its service, and we look forward to making DreamWorks Animation titles available to over 24 million Netflix members in the U.S.," DreamWorks Animation CEO Jeffrey Katzenberg said in a statement. "This arrangement allows us to get more value for our content while giving us a greater degree of flexibility in how we distribute it across multiple platforms in today's evolving digital world."

Under the Amazon-Fox deal, titles available to Amazon Prime members will include such movies as Speed, Mrs. Doubtfire, Doctor Dolittle, Last of the Mohicans and Office Space plus older films including The Longest Day, All About Eve, 9 to 5 and Butch Cassidy and the Sundance Kid.

Amazon Prime members also will gain access to a selection Fox TV series including 24, The X-Files, NYPD Blue, Arrested Development, Buffy the Vampire Slayer, Ally McBeal and The Wonder Years.

The company's Prime Instant Video service is included as part of the Amazon Prime membership program, whose other benefits include unlimited free shipping. Since the launch of Prime instant videos in February 2011, Amazon has more than doubled its selections to 11,000-plus titles through licensing deals with CBS, Fox, NBCUniversal, Sony, Warner Bros. and others.

 

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