NEW YORK ( TheStreet) -- Netflix (NFLX) reportedly struck a streaming deal with DreamWorks Animation (DWA). But can the studio behind family hits like "Shrek" and "Madagascar" make up for the potential loss of Liberty Starz (LSTZA)content?
The New York Times reported on Sunday that DreamWorks completed a deal with Netflix that would replace a previous deal with HBO. Analysts predict that the deal between Netflix and DreamWorks is worth about $30 million per movie over an unspecified period of time, the newspaper said.
"In the end DreamWorks was kicked out of HBO and Netflix is a buyer of last resort," said Janney Capital Markets analyst Tony Wible. "Frankly, paying $30 million per film seems expensive and would make the Starz deal look cheap as the two studios there put out almost 30 movies a year versus two to three at DreamWorks."
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