FILE – In this Monday, July 26, 2010 file photo, DreamWorks offices are shown in Redwood City, Calif. Netflix is going to start running original television series from Dreamworks Animation, the company announced Monday, June 17, 2013. Financial terms were not disclosed. Netflix Inc. says the multi-year agreement is its biggest deal ever for original first-run content and includes more than 300 hours of new programming. It expands on an existing relationship between the companies. (AP Photo/Paul Sakuma, File)
LOS ANGELES (AP) — Netflix said Monday that it would offer new TV shows from DreamWorks Animation starting in 2014 in what the company described as its biggest transaction ever for original first-run content.
Though financial details were not disclosed, Netflix Inc. said the agreement includes more than 300 hours of new TV episodes in a multi-year deal. Analysts estimated the contract could be worth several hundred million dollars over time.
The transaction is a major coup for both companies. It helps Netflix compete with pay TV channels such as HBO and Showtime, and it gives DreamWorks a potentially lucrative outlet for its shows as it tries to shed its reliance on two or three big-budget movies each year.
“This is arguably a groundbreaking deal,” said Tuna Amobi, a Standard & Poor’s equity analyst who covers both Netflix and DreamWorks Animation SKG Inc.
While concerns remain about how much the deal will cost Netflix in the end, the company said it can debut the original series in the 40 countries where Netflix Login to read more