Netflix recently announced a partnership with DreamWorks, giving the company streaming video rights to hits like Shrek and other popular movies. This is the first good news in a while for Netflix, which has been slammed by the public in recent weeks over its decision to increase subscription fees and spin off its DVD-by-mail service under the name Qwikster. Unfortunately for Netflix customers, they won’t see the new content immediately, since DreamWorks has a deal in place with HBO through 2012. Even so, this agreement could hurt cable satellite providers, most of which charge at least $15 a month for premium cable channels. The deal could force providers like HBO, Showtime, and Starz to develop additional new original series to help maintain their value.
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