Netflix knows that the key to its survival is original content, just like HBO realized this more than a decade ago. Whether Netflix manages to reach HBO's level of success, or even surpass it, remains to be seen.
For now, Netflix has signed a deal with DreamWorks Animation to create a new original series for the streaming site.
"The groundbreaking deal, which encompasses over 300 hours of new programming, is a cornerstone of a major initiative by DreamWorks Animation to greatly expand its television production and distribution worldwide," Netflix and DreamWorks explained.
"The new shows will be inspired by characters from DreamWorks Animation's hit franchises and upcoming feature films as well as the vast Classic Media library, which DreamWorks acquired in 2012 and includes some of the most popular animated characters in history," it added.
The need for original content is twofold for streaming sites. For one, original content is one way of differentiating themselves in a rather crowded market, and it's a way of getting some leverage on content producers who could – and do – ask for huge sums of money knowing they can pit cable channels and streaming sites against each other.