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Netflix secures streaming deal with DreamWorks

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The interesting aspect of this deal is that it's for yet released new films.. likely available on Netflix near DVD/Blu-ray.

The films themselves don't interest me, but the actual deal is interesting.

The lack of journalistic integrity surrounding Netflix's recent "numbers" announcment still bothers me though.

About one million of its 25 million customers in the United States are believed to have dropped the service in this quarter.
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Netflix never had 25 million domestic customers.. they had 24.6 million, and estimated they'd grow to 25 million, but instead shrank to 24 million.. likely almost entirely due to massive shrinking in the DVD-only business.

Their amount of streaming customers probably increased moderately in that same quarter.

Yes, their value has shrunk.. doesn't help when "doom and gloom" statements can't even bother to be accurate.
 
nVidiot_Whore said:
The interesting aspect of this deal is that it's for yet released new films.. likely available on Netflix near DVD/Blu-ray.

The films themselves don't interest me, but the actual deal is interesting.

The lack of journalistic integrity surrounding Netflix's recent "numbers" announcment still bothers me though.



Netflix never had 25 million domestic customers.. they had 24.6 million, and estimated they'd grow to 25 million, but instead shrank to 24 million.. likely almost entirely due to massive shrinking in the DVD-only business.

Their amount of streaming customers probably increased moderately in that same quarter.

Yes, their value has shrunk.. doesn't help when "doom and gloom" statements can't even bother to be accurate.
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A 4% drop in a short period of time is certainly cause for some alarm. I quit this month due to a complete lack of compelling streaming content.
 
bengraven said:
Netflix + HBO and all would be forgiven.

But after this deal, I think HBO will just giving Netflix the middle finger.
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Keeping in mind that Netflix is stream only service now, and HBO GO provides streamable HBO content to subscribers of HBO, why on earth would HBO give a rats ass about netflix?
 
outunderthestars said:
A 4% drop in a short period of time is certainly cause for some alarm. I quit this month due to a complete lack of compelling streaming content.
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The problem with the likes of Netflix and Hulu is that they don't have any leverage except their customer base. They don't make anything substantial themselves. They are merely the conduits to provide their customer bases with content.

For example the sale of Hulu was being questioned by analysts because they wanted to know exactly what the potential buyer was getting. Was it the customer base? Was it just the brand name?

Netflix should be worried by Amazon's new streaming effort for the simple reason that Amazon's operation doesn't need to make money at this point.
 
outunderthestars said:
A 4% drop in a short period of time is certainly cause for some alarm.
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The drop was less than 3%, and it was for combined all domestic customers, they lost HUGE amounts of DVD only customers, since that's where the price increase was.

I quit this month due to a complete lack of compelling streaming content.
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And you aren't alone, but you are also replaced by a new streaming customer most likely.. and then some.

If you really pay attention to the numbers Netflix announced they likely didn't lose any streaming customers "net".. and likely gained some.. just not as many as expected.
 
Netflix needs to evolve into being the streaming platform for media companies. I'd be glad to pay for HBO streaming as a premium service. I'd also like to see an ala carte movie rental services tied into it as well.
 
Trying to wrap my head around the terms but this seems like a bad deal. They're going to get rental revenue anyway right?

Has anyone signed up for HBO to see Kung Fu Panda? not sure why Netflix would think this would help them unless they truly believe they'll be the next great cable company. They don't have that kind of moola yet.
 
I just can't fathom how that valuation is sustainable. They aren't even a top tier studio. 30 mil per film * 100-150 films a year + TV? Streaming is dead.
 
sk3 said:
I just can't fathom how that valuation is sustainable. They aren't even a top tier studio. 30 mil per film * 100-150 films a year + TV? Streaming is dead.
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It's not sustainable unless the bet is that people leave cable/satellite and premium channels for Netflix. That ain't happening anytime soon.

Dreamworks can say what they believe all they want but it's all about how much someone is going to pay them since ratings are irrelevant. HBO streaming site could give them the same thing. Instead HBO said "30? Lol no..."
 
BruiserBear said:
$30 million per picture?


I cannot comprehend how they can justify that cost.
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Well the problem is that a key piece of info is missing from that. 30 million per movie over how many years? Unless we know that, it's hard to quantify how good or how shitty the deal is.
 
before netflix realizes it. Walmarts vudu service is going to introduce all the features consumers want from netflix and take over.

walmartistakingovertheworld.gif
 
Bad deal. Who really cares about Dreamworks Animation?

Netflix must have really been scrambling for something to announce. A deal for animated features only is basically no help to the streaming library.
 
Chiggs said:
Gee, that sounds like one heckuva lineup for 2013.
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The Croods is co-directed by Chris Sanders, who worked on How To Train Your Dragon and Lilo & Stitch. I expect Stitch/Toothless-like dinosaurs.
 
30 million dollars per film?

starting in 2013?


what the fuck.


it better be for the rest of Netflix' life at that price.
 
davepoobond said:
30 million dollars per film?

starting in 2013?


what the fuck.


it better be for the rest of Netflix' life at that price.
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Re-reading the release carefully this time, I noticed the 30 million is actually an estimate and not a hard number, and seems to be based off HBO paying 20 million per film.
 
Meh. Wake me when they get a good studio:

3398960470_05527c04b1.jpg


bigger/readable version
 
Great. Although I've already watched most of their output, so I guess I'll be waiting a while for anything newer to show up.

On another note, Netflix really needs to make more deals so that more movies can show up on the service. The last 10 movies I wanted to watch weren't on there. I want my fill of mindless action flicks :(

Ookami-kun said:
Speaking of TV shows, do they still have Power Rangers?
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Yes, all prior to Samurai it seems.
 
ColtraineGF said:
On another note, Netflix really needs to make more deals so that more movies can show up on the service. The last 10 movies I wanted to watch weren't on there. I want my fill of mindless action flicks :(
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Start watching discs....
 
did everyone in here ignore the first two sentences of the article, or do they just not think it's true?

I think it's bigger than most people are letting on in here. It's cheaper for a movie studio to put their films on Netflix than HBO. If more studios follow this lead, Netflix will start getting more movies like you guys are begging for. And once Netflix signs these deals for newer release movies, they open up the possibility to stream that company's catalog titles (which looks like IS happening in this case).

Not every content deal is going to be specifically for NeoGAF Member #2,383.

Are there numbers for Netflix subscribers vs. HBO?
 
Futureman said:
did everyone in here ignore the first two sentences of the article, or do they just not think it's true?
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I didn't.. this is big news if it becomes a trend. And I don't care whatsoever about Dreamworks Animation.

But you wonder how many deals like this Netflix can sustain at their current pricing.

BUT.. this is a deal for 2013 and beyond.. and could represent Netflix preparing for a tiered service package where customers pay more money for access to newer content.

I do not see how they'll squeeze much out of $8/month.. especially since the content owners don't necessarily see "huge amounts of customers" as a great thing, unless they are getting paid handsomely PER viewer.
 
Good for all the kids I guess. Adults,like us, need more new movies and TV shows.
 
So 30 million dollars PER movie was acceptable to them, but they did not want to spend 300 million for the entire STARZ library? WTF? And it's not even like they're getting Avatar here, these are 2nd tier animated films that do not have they broad appeal of Pixar features.

Am I the only one that thinks Netflix needs to stop trying to occupy the middle-ground, and just split itself into a Hulu-ish free advertising-based service and an ad-free Premium ($15-20/month) pay service? They are never going to get good content deals when they are only charging subscribers 8 bucks a month. If people could willfully and confidently burn their $80/month cable subscription they almost certainly would pay a much higher price. But since the streaming library is dying so quickly, it's pushing people back to cable. Overpaying for some really shitty animated movies isn't going to change that.
 
border said:
So 30 million dollars PER movie was acceptable to them, but they did not want to spend 300 million for the entire STARZ library? WTF? And it's not even like they're getting Avatar here, these are 2nd tier animated films that do not have they broad appeal of Pixar features.

Am I the only one that thinks Netflix needs to stop trying to occupy the middle-ground, and just split itself into a Hulu-ish free advertising-based service and an ad-free Premium ($15-20/month) pay service? They are never going to get good content deals when they are only charging subscribers 8 bucks a month. If people could willfully and confidently burn their $80/month cable subscription they almost certainly would pay a much higher price. But since the streaming library is dying so quickly, it's pushing people back to cable. Overpaying for some really shitty animated movies isn't going to change that.
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$300 million wasn't acceptable to Starz, not to netflix.

Doing the math you'd need almost 4 million streaming subscribers per film to make a little profit that assumes very little opex. Netflix is in a tight spot. They unleashed a beast with Streaming, everyone wants to do it but the studios are stuck in pre-internet ideaology. As for discs Redbox is kicking their butt. It's a tough situation and making silly panicked decisions like this and qwickster are only digging their grave deeper.
 
border said:
So 30 million dollars PER movie was acceptable to them, but they did not want to spend 300 million for the entire STARZ library? WTF? And it's not even like they're getting Avatar here, these are 2nd tier animated films that do not have they broad appeal of Pixar features.
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Oh look at that, willful ignorance and Pixar fanboy-ism all wrapped up in one nice neat little package.
 
Cyrillus said:
Oh look at that, willful ignorance and Pixar fanboy-ism all wrapped up in one nice neat little package.
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I don't think I've even seen half of Pixar's movies. But I do recognize that Pixar has broader appeal than Dreamworks. I think I actually liked How To Train Your Dragon better than anything from Pixar -- but I also recognize that any non-Dragon Training Dreamworks feature is garbage.
 
border said:
I don't think I've even seen half of Pixar's movies. But I do recognize that Pixar has broader appeal than Dreamworks. I think I actually liked How To Train Your Dragon better than anything from Pixar -- but I also recognize that any non-Dragon Training Dreamworks feature is garbage.
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Oh boy here we go.gif
 
border said:
I don't think I've even seen half of Pixar's movies. But I do recognize that Pixar has broader appeal than Dreamworks. I think I actually liked How To Train Your Dragon better than anything from Pixar -- but I also recognize that any non-Dragon Training Dreamworks feature is garbage.
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This is not necessarily true. Dreamworks is extremely popular within a moneymaking demographic. I overwhelmingly love PIXAR movies more, the wife and kids like Dreamworks more. We all think they are the top two animation studios out there regardless. PIXAR has better critical acclaim but popularity is totally debateable.

Personally, I think Dreamworks is more impressive from a business angle since they never had Disney muscle & tie-ins. No way around the fact that Katzenburg is a genius. In any event, this will always be a win for Dreamworks and a loss for Netflix. It reaks of desperation on Netflix's side.

FAKE EDIT: Found this and thought it was interesting.

http://www.metacritic.com/feature/pixar-vs-dreamworks-animation-comparison
 
I'm thinking the 30 million is based on projections. If a film flops I can't imagine them paying top dollar for it. Dreamworks' films rarely flop though but many have middling success.

I seem to recall that although HBO has a movie deal with Fox, they had to pay extra for Star Wars and Avatar. However, that may have had something to do with Lucas and Cameron.
 
Wasn't sure if this was worth its own thread, but Netflix has now signed a deal with Time Warner for the right to stream shows from The CW network:


2:01 p.m. | Once a Netflix skeptic, Time Warner has struck its biggest deal yet to allow the online service to license its television content.

On Thursday, Time Warner’s Warner Bros. Television Group and CBS Corporation announced a $1 billion deal that will give Netflix the rights to stream shows that air on the CW network for at least the next eight years.

Eight dramas including “The Vampire Diaries” and “Gossip Girl” that currently air on the youth-oriented CW network, a joint venture between CBS and Warner Bros, will be available for streaming beginning as early as Oct. 15.

The deal is the result of a year-long evolution at Time Warner in which Chief Executive Jeffrey L. Bewkes established a set of guidelines for monetizing content via subscription streaming services like Netflix, Hulu Plus and Amazon Prime.

“Our rules included bypassing the quick and easy money,” Mr. Bewkes said in an interview Thursday. “We established a strategy to responsibly work with Netflix.”

That strategy included not separating the rights to TV shows so that the same show could be sold into syndication on a traditional TV network and, then, at a diminished rate, to an online subscription service.

Mr. Bewkes came under criticism last year when he argued that Netflix’s potential was overhyped. He compared the Web service to “the Albanian army” taking over the world.

The Warner Bros.-CBS deal speaks to an ongoing evolution, Mr. Bewkes said, adding that the way media companies were cheaply licensing content to online video-on-demand services didn’t make sense.

He said he envisions Netflix and other services as a means to make money on shows like those on the CW which are heavily serialized and would not lead to billion dollar traditional syndication deals like CBS’s “The Big Bang Theory” or “The Mentalist,” both produced by Warner Bros.

After the four-year Netflix deal expires, Warner Bros. and CBS will have the opportunity to shop CW shows around for traditional syndication deals.

The CW’s audience of viewers ages 18 to 34 prompted the companies to explore an online on-demand deal, since younger viewers often prefer to watch TV on laptops, iPads or via streaming. The concept fits what Mr. Bewkes has dubbed “TV Everywhere,” an industry-wide push to make money off of content while making it available on any device.

In a statement, Leslie Moonves, chief executive at CBS Corporation, said the deal opens a new revenue stream for CW shows. “It also further illustrates how new distribution systems are providing premium content suppliers with additive revenue streams while still preserving traditional monetization windows.”

But don’t expect CBS or Warner Bros. to make its hit big-tent sitcoms or dramas readily available online. Syndication deals for network shows represent a huge revenue stream for Warner Bros. and bring in big dollars to networks. Last year, Warner Bros. sold “The Big Bang Theory” for a record $2 million per episode to Time Warner’s TBS and Fox.

“We’re talking billions of dollars, so to go and put those shows out essentially on a table in the street is not a good idea,” Mr. Bewkes said.

Between an unpopular price hike, the removal of some popular films and a botched plan to separate the DVD-by-mail arm of its business, Netflix has had an exceptionally hard few months. The price hike, which affected about half of its subscribers, was intended in part to raise more money for content licenses like the one announced on Thursday, a company spokesman said.

“We’re always negotiating with networks and studios,” said the spokesman, Steve Swasey.

He rebuffed a suggestion that the deal with the CW was quickly completed to rebut some of the recent bad news headlines. “These deals take a long time to consummate,” he said.

At midday Thursday, Netflix stock had risen about 2.2 percent, to $116.11.
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http://mediadecoder.blogs.nytimes.com/2011/10/13/deal-with-time-warner-brings-the-cw-to-netflix/
 
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