Netflix has had a lot of bad news lately but today the streaming movie and TV show service has secured a new deal to offer movies from the major Hollywood film studio Dreamworks. The New York Times reports that Netflix paid $30 million for the deal which gives them the rights to stream movies from Dreamworks over a unnamed period of years. The movies, as well as television specials, will become available for Netflix customers starting in 2013. The deal replaces one that Dreamworks previously had with the HBO cable TV network.
Netflix has seen a lot of bad press lately, mostly due to the decision earlier this month to split its streaming video group and its DVD mail rental division into two separate companies. However Dreamworks" CEO Jeffrey Katzenberg is quoted as saying that he supports Netflix"s move, saying the company made, " ... a very tough and very strategic call that will ultimately prove to be the right one for long-term success."
Netflix may be making a move to secure more licensing deals like the one with Dreamworks to help replace one that it will be losing in a few months. Netflix was unable to secure an extension of a previous agreement with the Starz pay cable TV network to stream its movies and TV shows. That deal is expected to end on February 28, 2012. Netflix still has a deal to stream movies from the Epix cable TV network which shows new and classic movies from the Paramount, Lionsgate and MGM movie studios.