Netflix, DreamWorks Animation Reportedly Near Streaming Pact

“Kung Fu Panda” studio would replace a current deal with HBO for one with the subscription service

Last Updated: July 25, 2011 @ 11:22 AM

DreamWorks Animation and Netflix are nearing a streaming pact which would give the subscription giant digital access to the studio's film catalogue, Bloomberg reports.

Spokespeople for Netflix and DreamWorks Animation declined to comment. 

The deal with Netflix would replace a distribution pact that DreamWorks Animation currently has with HBO. That deal ends in 2014. 

An announcement may happen this week and could be pegged to both companies' quarterly earnings announcements. 

It would also be a piece of good news for the two companies, after a period of bad publicity. Netflix has been slammed by customers after it announced two weeks ago that it would hike the price of its most popular subscription plan by nearly 60 percent. 

For its part, DreamWorks Animation's share price has dropped nearly 30 percent this year as DVD sales have plummeted and films such as "MegaMind" have underperformed at the box office.