Netflix, Inc. (NFLX) Continues to Emphasize Original Content With Dreamworks Animation Skg Inc (DWA) Deal

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DreamWorks doesn’t make Netflix a buy

Without knowing what Netflix promised to pay DreamWorks, or the quality of the content DreamWorks is providing, it’s difficult to discern whether or not Netflix won out in the deal. Certainly, the 7% pop on Monday seems a bit exuberant.

DreamWorks is a clear winner, as there’s obviously a market for the company’s content outside of Hollywood.

For its part, Amazon looks to benefit in the near-term by getting the rights to the Viacom content Netflix didn’t want. However, Netflix’s strategy of wholly original content could be the better long-term play.

Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, DreamWorks Animation, and Netflix. The Motley Fool owns shares of Amazon.com and Netflix.

The article Netflix Continues to Emphasize Original Content With DreamWorks Deal originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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