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DreamWorks Animation stock up on news of Netflix deal

July 25, 2011|By The Los Angeles Times

News that DreamWorks Animation is cutting short its output deal with HBO in order to work with Netflix sent the "Shrek" producer's stock to its highest point in more than a month.

DreamWorks Animation's current agreement with pay-TV channel HBO was to run until 2014. Under the terms of the deal, DreamWorks Animation movies go exclusively to HBO during the "pay cable window," which typically starts about six months after theatrical debut.

However, DreamWorks Animation has gone to HBO and obtained an exit from the contract so it can instead make its movies available on Netflix's Internet streaming service during that window, a person familiar with the matter confirmed.

The deal with Netflix would only be for DreamWorks Animation movies released in 2013 and 2014. Older movies from the studio would remain available exclusively to HBO for the next several years. COMPANY TOWN

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