DreamWorks, Twentieth Century Fox announce new distribution deal
Glendale, California – DreamWorks Animation SKG Inc. has entered into a new five-year distribution agreement with Twentieth Century Fox. Under the terms of the agreement, Fox will assume certain marketing and distribution responsibilities in both domestic and international markets for all animated feature films produced by DreamWorks Animation for release in 2013 through 2017.
Fox will receive a distribution fee on worldwide theatrical and home video gross receipts as well as on international television, and on certain digital businesses, including rentals, SVOD and EST. DreamWorks Animation, meanwhile, will retain the rights to distribute its product in the domestic television windows without paying a fee to Fox.
“Starting in 2013, DreamWorks Animation content will be distributed in the more traditional markets under a fee structure that is similar to our existing arrangement with our current distributor,” said Jeffrey Katzenberg, Chief Executive Officer of DreamWorks Animation, in a statement. “However, our new agreement with Fox presents more favorable economics overall for DreamWorks Animation because we are taking advantage of lower costs associated with the emerging digital distribution landscape and managing domestic television distribution in-house.”
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