Netflix (Nasdaq: NFLX) will get about 300 hours of original programming from DreamWorks Animation under a new agreement the two companies announced Monday. The new original series will feature characters from some of DreamWorks' hit movies such as "Shrek" and "Kung Fu Panda" and older animated characters to which DreamWorks owns the rights.
"This deal represents a major expansion of what's already a phenomenal relationship," Ted Sarandos, Netflix's chief content officer said in a press release. The deal also will make Netflix the exclusive U.S. and Latin American video distributor of DreamWorks Animation feature films beginning in 2014. The terms weren't disclosed.
Developing children's programming based on already-popular characters such as Shrek is a smart strategy for both Netflix and DreamWorks Animation. For Netflix, the deal will provide a deep collection of new programming with built-in appeal to young audiences. For DreamWorks Animation, it provides a lower cost, lower risk way to exploit the franchises it has created through years of box office success.
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