Netflix outbids HBO in deal with DreamWorks: $30 mil per movie

Netflix needs some good news lately, after getting bashed for raising prices and losing their redistribution deal with Starz. The stock headed down, as did customer confidence. Will outbidding HBO for first access to DreamWorks movies boost Netflix?

The story in the New York Times points out this is the first time an Internet streaming service outbid a cable / satellite pay station. Netflix calls this "a really interesting landscape shift."

Our bet for the most thrilled companies hearing this news? Hardware vendors that connect streaming Internet feeds to TVs. But perhaps all TVs will have Internet streaming as a matter of course when the deal starts in 2013. And CNET says HBO is thrilled to get out of their deal with DreamWorks, so they dumped them a year early. Hmm.

Last gasp

About all I can suggest, as both a customer and a stockholder, is that a certified laboratory be engaged to check the Los Gatos municipal water system for heavy-metal content.

CamperBob on

Netflix currently has 24 million customers and dropping fast, but for simplicity's sake, let's say they manage to increase to 30 million when this deal begins in 2013, that is $1 per user whether or not they watch the movie ... which is unlikely. More realistically, only 15 to 20% will see even a highly rated release, so we're talking $5 to $6 then, more in line with what on-demand films get now on cable. Overall, a lousy deal or Netflix, but a windfall for Hollywood.

fulltext72 on

I stopped to read the NY Times articles. It glosses over the fact that this deal seems to be just for future films and not much (if any) of the back catalog. Seems like Netflix overpaid just to stop the bleeding.

ryanstewart on

Haha, I'm with the others on here about 2013. Don't be making announcements this early, especially to streaming customers, who by their very nature want stuff NOW. Like me, for instance dammit...

wyldstallynzdude on

Competitors gaining

This is prescisely the same fail that happened to Blockbuster/Hollywood Video. How do these big businesses not learn??? BB/Hollywood ran off the smaller mom and pop video store, then got toob ig for THEIR britches and now Netflix has ran them off and DOES THE SAME THING.

jasonbuzzkill on

in 2013: "what's a netflix?!" :D

ISTi on

Great news

WooHoo! Come on Netflix let's keep em' coming. Get some more big studios which will start drawing more and more people which will then make the other (greedy) studios jealous... This is the ONLY way for us consumers to have one place to get all of our content. Legally. And I want to pay and do it legally but THEY need to get their shit together and offer it to us first...

DetroitTech on

Well, it certainly is nice to see that Netflix's promise of securing higher-quality content is at least partially coming to fruition. Also, it is nice to see a content creator finally start talking seriously about internet streaming versus traditional cable as a means of content delivery.

icarus_drowning on

Are you a Netflix subscriber? Did you get mad at the price increase? Will this deal help you feel better, at least in 2013?

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