DreamWorks CEO: Netflix Has the Perfect Audience for Us
CEO Jeffrey Katzenberg has taken DreamWorks Animation (NASDAQ:DWA) from a conventional film company and turned it into a studio that produces hundreds of hours of television programming in multiple nations around the world, not to mention the proud owner of a new studio in Shanghai.
Earlier this week, DreamWorks announced a deal with video streaming company Netflix (NASDAQ:NFLX) that it will produce over 300 hours of original programming, giving Netflix exclusive rights to those television shows and movies. The deal is expected to return $100 million to DreamWorks in 2013, with that number jumping to $200 million in 2015, according to CNBC.
Netflix has reinvigorated its streaming service by licensing original content and producing some of its own, most noticeably “House of Cards,” which was released earlier this year. In doing so, the company retained many customers that had threatened to take their business elsewhere. But now DreamWorks believes Netflix has the perfect audience for its programming.