This means, as The New York Times pointed out Monday, that original series based on DreamWorks characters like "Shrek" and "Madagascar" will soon air exclusively on Netflix's online streaming service.
The new programming, set to begin in 2014, will also feature characters from the DreamWorks-owned Classic Media library, which includes "Lassie," "George of the Jungle" and "Casper the Friendly Ghost."
“This deal represents a major expansion of what’s already a phenomenal relationship, allowing us to bring beloved DreamWorks characters to the 40 countries where Netflix operates and setting the stage for us to innovate together as we expand into new markets,” said Ted Sarandos, Netflix Chief Content Officer, in a statement.
So what's in it for DreamWorks?
CEO Jeffrey Katzenberg said that the deal was part of his company's "commitment to original content in the Internet television space."
According to CNN Money, Netflix got a boost from the deal, with shares up 7 percent.