AceShowbiz -

Netflix and DreamWorks have signed what the Los Gatos-based company describes as its biggest transaction ever for original programming. The two have agreed on a multi-year deal which will provide the streaming media with 300 hours of new TV episodes.

Through the deal, characters from past DreamWorks Animation franchises, including "Shrek" and "The Croods", as well as its future films like "Turbo", will appear in new TV series. It marks the first time DreamWorks characters will be shown on television as part of original content.

"This is arguably a groundbreaking deal," says Tuna Amobi, a Standard & Poor's equity analyst who covers both Netflix and DreamWorks Animation SKG Inc. He adds, "The big question is if this is going to be an international catalyst in terms of subscriber growth."

Financial details of the agreement were not disclosed, but it's estimated that Netflix could pay between $25M to $50M a year. The first of the new DreamWorks Animation programs will launch on Netflix sometime in 2014.