Updated from 8:29 a.m. ET to reflect additional analyst comments and opening share prices
NEW YORK (
(NFLX - Get Report)
is teaming up with
(DWA - Get Report)
to bring TV series and movies to the streaming video service, in a deal that strengthens the company's hand in winning original content and new subscribers.
DreamWorks Animation will create at least 300 hours of original Web-only movie and TV content, in a partnership that further underscores attempts by Netflix and its CEO Reed Hastings to take on the cable TV industry. Partnering with DreamWorks indicates Netflix will be taking a multi-faceted approach to its content library, as the company picks over Hollywood for the right formula to grow its subscriber base of nearly 30 million.
In the deal, Netflix will get exclusive rights to new shows from DreamWorks hit franchises such as
Kung Fu Panda
and exclusive rights to movie releases from the Jeffrey Katzenberg-run company such as
, the companies said in a joint press release. In February, Netflix and DreamWorks cut a deal to have animated episodes of
run exclusively on the streaming network.
"This is an unprecedented commitment to original content in the internet television space," said Katzenberg, DreamWorks Animation CEO, in a statement.
Already, Netflix is turning to a burgeoning Hollywood power broker after signing a multi-year
exclusive content agreement
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in December and embarking on a $100 million-plus commitment to create original shows such as
House of Cards
With DreamWorks Animation onboard, Netflix will significantly diversify the sources of its exclusive and original programming. Such partnerships also indicate the company may have an increasingly
in negotiating content, after skipping out of a handful of non-exclusive relationships in recent years.
For instance, Netflix had a hole to fill in children's programming after it was unable to negotiate a renewal of its contract with
, a unit of cable TV giant
"The content is expected to begin airing in 2014, and should, in part, help to offset the gap in Netflix's children's content schedule created when it decided not to renew its agreement for certain content from Viacom's Nickelodeon Network earlier this year," Michael Pachter, a Wedbush Securities analyst, wrote in a note to clients. Pachter, however, continues to question whether Netflix can make money from its push for original content.
Viacom took its Nickelodeon business to Netflix's primary competitor
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"This deal represents a major expansion of what's already a phenomenal relationship, allowing us to bring beloved DreamWorks characters to the 40 countries where Netflix operates and setting the stage for us to innovate together as we expand into new markets," Ted Sarandos, Netflix Chief Content Officer, said in a statement.
Sarandos and Netflix have often
when opting not to renew content deals, only to impress with new relationships such as Disney and DreamWorks.
The first DreamWorks created movie will hit Netflix in 2014.