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Netflix, DreamWorks Animation in licensing talks, report says

Shrek could be headed to Netflix soon. The Web video rental service is in talks with DreamWorks Animation to take over a distribution deal that HBO once possessed, Bloomberg says.

Netflix is close to reaching an agreement to license content from DreamWorks Animation and a deal could get done as soon as this week, according to a published report.

DreamWorks Animation

The news comes with Netflix due to report earnings after the close of trading today and with scores of Netflix customers deciding whether the company's streaming library is worth an upcoming fee increase.

Bloomberg is reporting that Netflix and DreamWorks Animation, the maker of such films as "Shrek," "Madagascar," and "Kung Fu Panda" are still in talks but that it appears Netflix will take over a distribution deal that the studio once had with cable heavyweight HBO.

HBO owned the distribution rights until 2014 but it granted DreamWorks Animation's request to get out of the contract earlier, according to the report.

DreamWorks Animation was once part of DreamWorks, the film studio started by Steven Spielberg, Jeffrey Katzenberg, and David Geffen, but was spun off and taken public in 2004.