Why Netflix Needs "Turbo" to Be a Hit

This is a big weekend for both DreamWorks Animation (NASDAQ: DWA  ) and Netflix (NASDAQ: NFLX  ) . DreamWorks' second film of the year, Turbo, hits theaters following its March release, The Croods. The company hopes Turbo performs more like that film than its Rise of the Guardians miss last year.

But Netflix investors also have reasons to root for big box office numbers here. Fool contributor Demitrios Kalogeropoulos explains why in the video below.

Thanks to two deals that the companies struck recently, he says, Turbo will be coming to Netflix streamers exclusively next year. And Netflix will also be home to a DreamWorks original series based on the Turbo characters. That makes this film unusually important for the streaming service, which is depending heavily on DreamWorks to provide popular, family-friendly content.

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  • Report this Comment On July 21, 2013, at 1:34 AM, sailrmac wrote:

    Ah, but the box office is in and it's not a hit. Too bad NFLX.

    NFLX will never be a high net margin company because it has to pay a big portion of the value of any content out to the content provider. There's lots of deep pocketing competition for that content which ensures it will always cost top dollar. FYI House of Cards in not like HBO hits. HBO owns it's hits and never has to pay for them again. House of Cards on the other hand was bought for 2 years by NFLX. Even if it is a hit, they get to pony up again in two years.

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