Netflix has struck a deal with Hollywood animated movie powerhouse Dreamworks Animation.
The deal will see major Dreamworks films like Shrek, Antz, Kung Fu Panda, and Madagascar stop airing on HBO and become available exclusively to Netflix’s 30 Million subscribers to stream over the web.
The multi-year deal, reportedly worth $30 million per movie, marks the first time a Hollywood content provider has chosen to stream their films over the web in place of Pay TV. However, Netflix users will have to wait some time for the content, which will not be available on the service until early 2013.
Speaking to The Times about the deal, Dreamworks Animation CEO Jeff Katzenberg said: “This is a game-changing deal… We are really starting to see a long-term road map of where the industry is headed.”
The news of new content comes amid widespread complaints by subscribers who object to recent changes to the Netflix DVD division, which include both a major price raise and the spinning-off of the Netflix DVD rental division into separate company named Qwikster.
In the face of increasing competition from Apple and Amazon, Netflix continues to clamor for new deals to widen its selection of box office hits, particularly after losing the right to stream Walt Disney movies when it’s licensing deal with Starz Entertainment expires.