Katzenberg’s Netflix Motivation

Signing with Netflix: Mr. Katzenberg’s Motivation - Corporate Intelligence - WSJ: "After co-founding DreamWorks SKG with partners David Geffen and Steven Spielberg, Jeffrey Katzenberg took the start-up studio’s animation unit public in 2004. But that year turned out to be the peak of the DVD sales boom and the subsequent decline not least owing to a double digit drop in U.S. home entertainment spending. In addition, since virtually all of DreamWorks’ revenue comes from its two or three yearly releases, a single flop like “Rise of the Guardians,” can batter stock prices. DreamWorks Animation shares dropped 13% around the opening of “Guardians.” Since early 2010, the stock is down 45%. Katzenberg’s solution: Turn DreamWorks Animation into a multi-media family entertainment company."

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