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Dreamworks partnership affirms Netflix's commitment to original programming

Earlier this month, Netflix (NFLX) released its first ever series made exclusively for Netflix subscribers, “House of Cards.” The company opted to release the first season in its entirety on the same day, and now it has announced plans for another new venture… its first ever “for kids” television series.

Netflix understands that, despite its strong streaming and DVD rental business, unless it beefs up its own programming its potential for growth is limited. As long as Netflix serves as primarily a pipeline for major content owners it will be subject to contract negotiations, which will in turn limit its ability to increase profit margins. Creating its own content will help ease that problem a bit.

For its new kid friendly series, Netflix is teaming up with DreamWorks Animation (DWA) to deliver a series based on DreamWorks upcoming moving “Turbo” which will hit the big screen this summer. Hoping to cash in on the expected popularity of the movie, the two companies are creating “Turbo: F.A.S.T.”, which will debut in December in the U.S. and 40 additional countries where Netflix has service.

The premise behind the series is that its episodes will pick up where the movie ends, so if the movie is a box office hit, Netflix can expect to see a lot of demand for the series as well.

Children's programming has always been big for Netflix, which streamed over 2 billion hours of children's programming last year alone.

The move is good for Netflix, and re-affirms the company's commitment to beef up its original programming, which is going to be crucial for the company's future.

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va. His articles typically cover big-picture events and forecasting what impact they will have on the stock market. In addition to writing for Fresh Brewed Media, Michael also wrote for AOL's BloggingStocks for three years, focusing most of his attention on the energy and technology sectors. Follow him on Twitter at @MFatMICenter.

Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.