Netflix Completes $350M Renewal With VFX Firm DNEG
Netflix has signed a multi-year service extension with VFX and animation company DNEG, under which the streamer plans to spend at least $350 million on the company through 2025.
The non-exclusive agreement covers DNEG’s provision of visual effects and virtual production services for Netflix series and films through September 2025. The new agreement extends and extends a previous agreement the companies signed in September 2020.
As part of the agreement, Netflix has agreed to award at least $350 worth of projects to DNEG Millions of its services over the term, “which may be increased if certain project award milestones are met,” DNEG announced in a regulatory filing.
DNEG is working with Netflix on a number of upcoming projects including Stranger Things Season 4; Rian Johnson’s Knives Out 2; fantasy action dramas The School for Good and Evil and Avatar: The Last Airbender; origin story “The Witcher: Blood Origin”; and director Francis Lawrence’s upcoming fantasy comedy adventure Slumberland. In addition, DNEG Animation provides animation services for the animated feature film “Nimona” scheduled for release by Netflix in 2023.
Previously, DNEG has provided VFX services for Netflix series including Locke & Key Seasons 1 & 2, Shadow & Bone, The Irregulars, Cursed, Altered Carbon Seasons 1 & 2, Jupiter’s Legacy ‘, ‘Away’, ‘The Letter For The King’, ‘Black Mirror’ Seasons 4 & 5, and ‘The Dark Crystal: Age of Resistance’, as well as a number of Netflix films. DNEG’s ReDefine division has provided VFX for Netflix films such as The White Tiger, Mimi and Sweet Girl and is currently in production on the upcoming Adam Sandler film Hustle.
“This agreement is transformational for DNEG and creates an opportunity for further expansion of our global reach and continued investment in DNEG’s industry-leading technology,” said Namit Malhotra, Chairman and CEO of DNEG, in announcing the renewal.
In order to “meet the strong demand for our services and to drive even further growth”, according to Malhotra, DNEG plans to expand its capacity by up to 40% by the end of 2022.
DNEG has nearly 7,000 employees with global offices and studios in North America (Los Angeles, Montréal, Toronto and Vancouver), Europe (London) and Asia (Bangalore, Chandigarh, Chennai and Mumbai).
DNEG is to become a public company through a merger with Sports Ventures Acquisition Corp, a special purpose entity (SPAC). That is expected to close in the first half of 2022.
(Picture above: Netflix “Stranger Things 4”)