Netflix (Nasdaq: NFLX) isn't slowing down ahead of tonight's earnings report.
The video buffet operator reportedly hopes to fortify its digital library by adding the family-friendly animated fare of DreamWorks Animation (NYSE: DWA).
Sources tell The Hollywood Reporter and Bloomberg that the deal could kick in at some point next year, replacing an arrangement that DreamWorks Animation had inked with Time Warner's (NYSE: TWX) HBO.
DreamWorks Animation's catalog isn't very deep. The studio aims to put out an average of two theatrical releases every year, with one of them a sequel to a proven franchise. However, the studio's strong box office performance makes it quite the catch.
DreamWorks -- not Pixar-padded Disney (NYSE: DIS) -- released the highest-grossing animated movie of all time. No release has yet topped Shrek 2's $441.2 million in domestic box office receipts from seven years ago, despite ticket price inflation over the years and the emergence of premium 3-D and IMAX (NYSE: IMAX) experiences. The first three films in the Shrek series rank among the seven highest-grossing animated flicks of all time.
The green ogre's not alone in wooing audiences. How to Train Your Dragon and Kung Fu Panda broke through the $200 million stateside mark, with Madagascar and Monsters Vs. Aliens coming close.
DreamWorks Animation's growing catalog of characters, while no match to Disney's arsenal, has been more than enough to land juicy licensing deals to get its costumed heroes aboard Royal Caribbean cruise ships and Gaylord Entertainment's resorts.
Netflix will never get every studio to offer every flick though its streaming service. But every new deal that Netflix signs adds an incremental, making it that much harder for distant rivals to catch up.
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