For DreamWorks and its CEO Katzenberg, the Netflix partnership may be equally important to the company's growth and strategic positioning.

The company has been moving in the direction of more profitable serialized TV content from its traditional movies expertise, notes Michael Corty, a Morningstar analyst. DreamWorks acquisition of Classic Media, for instance brought in the intellectual property to build out TV shows that may soon run exclusively on Netflix.

Meanwhile, instead of brokering to have content run on cable channels or movie distributors, DreamWorks is moving in the direction of streaming services such as Netflix. The company also announced a content partnership with Amazon.

" We can see strategically that this deal could be a win for both parties," Corty, the Morningstar analyst, wrote.

Netflix shares were rising over 6% to $227.81 in Monday afternoon trading, while DreamWorks Animation shares gained over 4% to $23.78.

Financial terms for the partnership weren't disclosed.

Netflix Ready to Tame Wall Street Skeptics.

Beware Deteriorating Cash Flow in Netflix, Amazon, Google Earnings.

-- Written by Antoine Gara in New York

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