Done Deal! DreamWorks Paying $33 Million, and Maybe Much More, for AwesomenessTV.
There we go: That DreamWorks Animation/AwesomenessTV deal I told you about last night is now official. The people who brought you “Shrek” are paying $33 million in cash for the YouTube channel …
Context & Ripple Effects
DreamWorks Animation had already broadened beyond theatrical releases through a streaming agreement with Netflix. Buying AwesomenessTV gives it a direct position in the YouTube channel ecosystem rather than relying only on outside distribution.
The move lands after YouTube funded roughly 160 original channels to make its service more TV-like. A studio acquisition of one of those digital-native players puts strategic value on audience-building and programming capabilities inside the platform.
First-order effects
- DreamWorks Animation takes control of AwesomenessTV for $33 million in cash, with additional consideration possible, adding a YouTube-focused programming operation to its distribution mix.
- AwesomenessTV gains the backing of an established animation studio, while its founders and other holders receive cash plus potential contingent value.
Second-order effects
- YouTube’s original-channel strategy gains a tangible validation point: channels built for the platform can become acquisition targets for traditional media companies.
- DreamWorks’ distribution strategy becomes less dependent on licensing arrangements such as its Netflix streaming deal, because it also owns a direct channel relationship on YouTube.
Third-order effects
- If other studios pursue similar purchases, digital-video channels may be valued less as marketing outlets and more as owned programming and audience assets.
- The deal points toward a media structure in which studios combine licensed streaming distribution with proprietary, platform-native channels to reach online viewers directly.
The trend: Traditional entertainment companies are moving from licensing content to owning digital-native channels and the audiences they assemble.