News Summary: Fox deal with DreamWorks Animation

AP News
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Posted: Aug 20, 2012 5:01 PM
News Summary: Fox deal with DreamWorks Animation

NEW PARTNER: DreamWorks Animation SKG Inc., the movie studio behind "Kung Fu Panda" and "Madagascar," says its films will be distributed by 20th Century Fox next year. The five-year deal replaces an existing distribution agreement DreamWorks has with Viacom Inc.'s Paramount Pictures.

THE SIGNIFICANCE: The arrangement brings DreamWorks' animated titles together with those of Fox, whose Blue Sky Studios produced the computer-animated hits "Ice Age" and "Rio."

BENEFITS: Although DreamWorks says its fee in theatrical and home video markets will be similar to its existing deal, it will benefit from lower costs for films distributed digitally.