DreamWorks CEO Jeff Katzenberg Tells Fox Business That Netflix CEO Reed Hastings May Have Taken Step "Too Soon"
DreamWorks Animation CEO Jeffrey Katzenberg spoke with FOX Business Network's (FBN) Liz Claman about the deal DreamWorks recently struck with Netflix Inc., and whether this announcement was overshadowed by the news that Netflix would raise its prices by 60 percent. Katzenberg said the announcement and the news about Netflix “are unrelated,” but that Netflix CEO Reed Hastings “may have taken that step a bit too soon and got a little ahead of where the consumer was ready to be.” Katzenberg also spoke about the future of 3D television, saying, “It's going to be a slightly slower rate of adoption than people thought out of the box.” Excerpts from the report are below, courtesy of Fox Business Network.
On if he was disappointed that the announcement to partner with Netflix was overshadowed by the news that Netflix would raise its prices by 60 percent:
“They are unrelated. Netflix is a relatively new business model in which they are really trying to find the best long-term path and future for themselves. Reed Hastings is a visionary. He looks over horizons and around corners and understands the transition from hard goods to digital is his future and that is what he was focusing on. He may have taken that step a bit too soon and got a little ahead of where the consumer was ready to be, but the sign of a great executive is to be able to see when a strategic decision like this is not working, make the correction, accept the responsibility for it and move on. Was it a stumble? Yes. Is it critical to their long-term future? I don't think so.”
On if he still supports 3D television:
“I am because I see the quality of what's coming down the line. The real gaining issue is to get enough programming and until there is enough of it, it's going to be a slightly slower rate of adoption than people thought out of the box. It will come primarily from sports and video gaming, but we're starting to see more programming available in 3D and people are embracing it and loving it.”
On whether the release of the movie “Puss in Boots” next week will be a success:
“We're in the hands of the movie gods at this point, but it's a great movie.”
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