When Netflix started upped its prices for subscribers by splitting streaming and disc rentals into separate subscriptions, the top brass said it would use the additional funds to secure streaming deals. Now the company has something to show for the promise, having secured a deal with DreamWorks for programming that currently goes to HBO. The agreement goes into effect in 2013.
According to The New York Times, the $30 million-per-movie deal could help nullify the programming losses Netflix will suffer when its deal with Starz expires in February.
In the past, the story says, HBO would pay $20 million per film, so Netflix has considerably upped the market rate for such deals. Another negotiation edge Netflix used was agreeing to let DreamWorks sell films digitally while they stream on Netflix. HBO blocks studios from doing so while movies are airing on the channel during an exclusivity window.
Netflix Secures Streaming Deal With DreamWorks [The New York Times]