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A little earlier today.
It looks like it is going to throw off quite a lot of revenue for your business a hundred million in the first year you think that steadily after that by 2015 it will kick up to 200 million annually.
Break it down for me what cost structure how was it different doing a series -- is doing a big movie.
Well the thing that I think really you know great about this is is that it's it doesn't have the same volatility to it.
You know this is the very -- substantial.
Long term output deal.
We have the stability.
As a great.
Platform you know for family entertainment today it really has become the go to destination.
And because of the size and scale of that as well as the size and scale of this.
Order it allows us -- really build up what will be an ongoing almost utility business for us that doesn't have the same.
You know volatility of movie.
No absolutely I mean it's much more predictable of course what you're gonna get -- because you pre sell the series but does it cost every night I just I have no sense of the business.
Is it half as much.
To -- thirteen episodes of the series as it is to do big movie do you consider marketing and and what's the proportion like.
Well you know I've not done the math on this but -- what I will say is is that.
We are going to produce.
About 12100 episodes.
Over the next five years.
-- represented just under -- billion dollars.
Probably see about a 30%.
On that revenue -- that's terrific -- -- margin my kind of movie.
Ours are about 35%.
Are very they're very very high you know the animated movies.
Traditionally for us -- been in.
Sort of mid to high thirty.
Percent margin business the movie business typically.
Is closer ten to twelve.
-- -- -- -- What picking Netflix -- -- there's so much competition out there right now.
For people trying to get original content is this is really the key you know when Amazon is trying to get.
People to come in and be dedicated to -- look -- crime you also have iTunes there's -- out there.
There are a lot of different distributors and outlets that are competing for premium contact so why did you pick Netflix what do they offer you.
Well I have to say combination of things to think first of all Netflix take costs equipment fifth -- topic got to give them.
You know a large degree of credit what do you mean.
-- vacate his -- and the idea -- -- what do you mean by that -- yes.
Very much out yet so we got a business -- Netflix several years ago we -- one of the first.
Companies to make it output deal -- them for.
Are animated feature films.
They made a tremendous tremendous.
Commitment tell us about two years ago and then last year.
At the end of last year.
Go into a regional contents.
For a family entertainment the way they have.
Already taken have a great leadership in terms of broader general contents like the house of cards and Arrested Development so.
We committed together last year to do.
-- TV series of -- which is our movie coming out and a few weeks.
And Alomar working with them.
I think it really expose both of us in a very good way to their ambitions of what they're doing and growing their platform.
And frankly them to us in terms.
Dark classic media library and the opportunity -- something significantly.
Greater than just doing one or two.
One off TV show.
Yet you mention turbot which is your new character that's coming -- this -- right.
He's gardens know who Van Nuys to -- that special power and can go super fast I can't wait to see that.
It looks like it's your first crossover product that would be in theaters but -- also have a series.
Online at Netflix -- on your Vietnam whatsoever you however you view how you're getting that system.
Is that the model you see going forward that you are both aware you create careless errors that are exclusively.
Found -- Netflix.
Well we'll do -- we you know we have some original contents.
That we're doing.
For as part of the Netflix deal we have some of our classic media titles that we -- you making for them and for sure we will be taking.
Properties off of our big feature films that.
Can be adapted.
That's been very very successful let us we've had three blockbuster hits for Nickelodeon.
With Madagascar -- come -- -- -- monsters vs aliens and also a great success for Cartoon Network -- are dragons TV show so.
-- had really good track record with that and so this really is expanding on it.
-- you mentioned house of cards and it proved one -- fascinating new -- On Netflix which is how quickly people consume.
That content that are on their there was a study that said that every you know there were bunch of people a big percentage that went through house of cards the entire first season.
In 48 hours and in fact we watch cartoons about what's at my house yeah exactly we -- -- -- With the cards you are guilty my -- if kids don't have been very very fast as well -- they like something.
Do you think there's going to be pressure on you to come up with even more content and you think you could grow this business.
Beyond the 200 million mark annually.
So the answer is we hope there's pressure on us to do it and were confident that we can continue to.
Scale -- you know we have a great foundation of talent here we have the bandwidth to do this.
And the degree to which it really proves itself out which I have a high degree of confidence in more importantly.
Netflix does this is something that will be an ongoing long term.
Business partnership between us and Netflix.
What it says about the movie business.
That you're moving in this direction and you know we know what it says for broadcast television.
That a lot of series are are moving on to Netflix and other devices where it's.
It's pay as you go and it's watch it when you -- its treatment and it's not the normal -- that people used to consume.
You know television shows what is seat for the movie business do you think of the movie business is getting smaller.
Now we're not at all I think these are this is about.
You know -- a -- a a growing opportunity for DreamWorks.
Particularly for our brand and for the success we've had in the movie business in the the only reason this exists today.
Is because of what you talked about at the top of this which is that a gas car and track and come -- hand and you know the crude send her vote there the heart and soul of what we do and they just create today so many opportunities beyond.
Their life -- movie theaters and what we're doing is growing our company.
To be able to take advantage of that and get the full value out of that so we see these things is very complementary -- one another the movie business continues to be.
Very very very strong for us a very important part of our business and that's the foundation of the company.
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