'Kung Fu Panda' beefs up Netflix
Movie streaming service Netflix, facing increasing competition from Amazon, is beefing up its original programming menu through a deal with DreamWorks Animation, the maker of 'Shrek', 'Madagascar' and 'Kung Fu Panda'.
Netflix shares rose as much as 6pc and DreamWorks shares as much as 7pc in early trading on the Nasdaq.
DreamWorks said the multi-year deal, which involves more than 300 hours of programming, is a cornerstone of a major initiative to expand its TV production and distribution.
The companies did not disclose the value of the deal or the length of the contract, the biggest that Netflix has signed for original programming.
Wedbush analyst Michael Pachter, who believes that Netflix's original content deals are costly, said the 300 hours are probably mostly catalog shows. Netflix could be paying between $25m to $50m a year for shows from the DreamWorks catalogue, he said.
Streaming companies such as Netflix, Amazon and Hulu are spending heavily on content as they fight for a piece of the fast-growing internet TV market. (Reuters)