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DreamWorks Deals With Fox

Submitted by on August 21, 2012 – 6:00 pm Comments

 DreamWorks started looking for a partner to help them distribute their movies. What started the idea of the deal is the falling of stocks. Fox walking away from a renewed contract opportunity with Paramount was a big help. DreamWorks saw their opportunity for an opening with Fox and started talk in fear it could be taken in an instant. Fox had to fight for their spot for partnership with DreamWorks against the very large company Sony.

Fox will be handling marketing and distribution for DreamWorks Animation. They will pay Fox an eight percent distribution fee to release the films according to sources. They will also pay Fox a fee of six percent for digital business, which is lower than Paramount paid. Analysts say it is not a certainty DreamWorks fall in profit was from distribution issues.

The contract between DreamWorks and Fox will last five years. Studio Chief of DreamWorks said “This deal is an absolute win-win, the one real difference here with Paramount is that 7 years later there are certain capabilities built within DreamWorks that that we can do ourselves” according to sources. Fox joining is giving hopes that they will become the number one distributer in the world. It took DreamWorks a year to find a good qualified partner, and now that they have found some good things are expected for both companies.

 

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DreamWorks is a company that is very grateful for the work other companies do for them, so Katzenberg publicly thanked Paramount for their work bringing out their films. In the end Paramount will still be tied with DreamWorks because of all the rights to films they have. DreamWorks still has the ability to reboot movies that Paramount has rights to, to gain their own particular rights on those films.

Throughout everything within their contract analysts say Fox may make bigger ground than DreamWorks when they go head to head, with DreamWorks on their side, to beat out Sony as the number one distributer. DreamWorks will now be able to have extra a little extra cash to make extra movies than planned in the next few years. It is unclear if they plan on using the extra funds for movies or to improve their much already improved animation. Everybody from both companies is on hype about the deal and look forward to many new changes that will bring both as leading competitors.

David Sibert

David is co-owner of Daily Bubble and editor-in-chief. Father and Husband and all around busy guy. He likes long walks on the beach and having fun playing computer games. Also a writer of Daily Bubble.

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