Monday, September 26, 2011

NYT: DreamWorks Animation Picks Netflix

post thumbnail Netflix�?More Humble? Following Botched Price Hike, CFO Tells Investors Netflix Stock -9.4% As Wall Street Wonders How Low It Can Go DreamWorks Animation has thrown its support to Netflix, according to The New York Times. The report says�Jeffrey Katzenberg’s studio has inked a deal with the DVD and streaming service that could be worth�$30 million per film to DWA in the lucrative pay TV window. The pact kicks off in 2013 and replaces�one that gave HBO� rights to the animation studio’s films and TV specials.�?We are really starting to see a long-term road map of where the industry is headed,? Katzenberg told the newspaper. ?This is a game-changing deal.? Um, no, because DWA’s product output is still very minuscule. But Netflix is desperate after�losing subscribers�because of�a price hike and�split of its DVD-by-mail and streaming services.�Now the company’s once-impervious stock price has been sliding fast. Netflix lost�Starz recently.�Netflix now needs to fight off challenges from rivals like Dish Network’s new Blockbuster Movie Pass service, Amazon, Walmart and Apple’s iTunes.

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