LOS ANGELES, CA., (Indiana's NewsCenter)--- DreamWorks Animation, the animated movie powerhouse that created hits like Madagascar and Shrek, has cut a deal to provide streaming films and TV specials via Netflix.
In scoring the deal, Netflix managed to beat out HBO, marking the first time Netflix’s web streaming has beat out a major pay TV producer in securing a distribution deal with a major film maker.
Netflix is still not out of the woods though. It faces growing competition from Apple, Amazon, Vudu and Wal-Mart. And Dish Network announced a Blockuster-branded streaming and DVD-by-mail service on Friday. And Netflix consumers are still reeling from a hefty price hike that drove many of them to get rid of their long-term accounts for DVD-by-mail service. Netflix will also lose the rights to stream a lot of films in February, since it failed to renegotiate a deal with cable channel Starz. Netflix also decided to spin off its DVD-by-mail service.
This quarter, about 1 million of Netflix’s 25 million consumers have dropped the service because of the price hike. And the company lost half its market value, or $8 billion, in two months. Netflix will begin streaming DreamWorks movies in 2013.
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