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Netflix Slowing Down Production? It Just Re-upped Its FX House for $350 Million

Netflix original series 'Stranger Things'
(Image credit: Netflix)

British-headquartered multi-national visual effects and animation studio DNEG announced an extension of its overall deal with Netflix through 2025. 

The agreement, which builds on a contract signed in September 2020, is valued at $350 million, according to SEC documents tied to DNEG's ongoing IPO process. 

DNEG's fingerprints are all over many of Netfllix's biggest hit original series and movies, including Stranger Things, The Witcher, Black Mirror and The Adam Project, just to name a few shows. 

DNEG also contributed the Oscar-winning visual effects behind Warner Bros.' Dune, just to mention a few of the company's ties to Academy Award-winning work. 

“This agreement is transformative for DNEG and creates the opportunity for further expansion of our global scale and further investment in DNEG’s industry-leading technology,” said Namit Malhotra, DNEG chairman and CEO. 

DNEG recently opened a studio facility in Toronto and is aiming to increase capacity by 40% by the end of 2022. It already employs around 7,000 workers, spread all over Europe, North America and Asia. 

The company is also in the process of going public via merger with special purpose acquisition company Sports Ventures Acquisition Corp. DNEG aims to close that business in the first half of this year. 

Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!