Online film and television streaming service Netflix is branching out into original content development with a new deal between the streaming company and well-known film studio DreamWorks. The deal will involve over 300 hours of original content developed by DreamWorks for Netflix’s large network of subscribers.
Originally a streaming network for mainstream television and movies, Netflix has rapidly expanded into original content creation. The service recently financed and developed a follow-up series to the award-winning Fox television show Arrested Development, which was cancelled due to poor ratings in 2006.
The show was seen as something of a coup for Netflix, which had historically only broadcast licensed content from other studios. The company recently announced that Arrested Development had been a major success, with the 15-episode series released all at once to capitalize on the recent trend of television ‘binge watching.’
Other recent Netflix productions include House of Cards, an American adaptation of the popular BBC political thriller miniseries. The studio has also invested heavily in licensing children’s television content, with hundreds of television shows from TV network Viacom Inc. bolstering its already impressive entertainment line-up.
The service’s focus on production has been viewed by industry insiders as a major threat to the entrenched television production industry. Netflix’s stock price surged on news of the announcement, increasing from $215 to $230 in Monday trading as the company released information about its deal with DreamWorks.
Numerous online streaming services have grown to prominence in recent years, as high-speed Internet access makes online viewing more possible. Hulu, an Internet-based streaming service launched by NBC, Fox, and Disney-ABC, reported revenues of $420 million in 2011 from its archive of ad-supported television content.
