Netflix has struck a landmark deal with Dreamworks Animation that will see it stream more than 300 hours of exclusive original programming from the Shrek and Kung Fu Panda producer.

The deal will see Dreamworks produce a string of spin-offs from current and forthcoming films for the international VoD service and could see new series featuring characters from Shrek, Monsters vs Aliens, How To Train Your Dragon and Postman Pat.

The move will be a blow to rival international kids broadcasters including Nickelodeon, which has produced kids series based on Dreamworks series including Madagascar and Kung Fu Panda, but will now be locked out of ordering future series as a result of the exclusive agreement.

The Netflix deal will also include potential series from characters including Casper The Friendly Ghost, Where's Waldo and Postman Pat, taken from the Classic Media library which was acquired by Dreamworks last year. …