Now that DreamWorks Animation’s end of partnership with Paramount is looming, the animation studio is in final talks with a couple of potential distributors who will most likely take over Paramount’s contract with DreamWorks: 20th Century Fox and Sony Pictures.
It has been reported by the LA Times that while DreamWorks is currently a very profitable company (and has a lot of future potential after its acquisition of Classic Media), its partnership with Paramount has become difficult as the two entities can’t come to terms for a contract renewal. The two studios have been partners since 2006, with Paramount currently taking 8% of the revenue generated by DreamWorks’ movies.
According to the LA Times report, neither Fox nor Sony is willing to commit to the same multi-year, worldwide deal that DreamWorks had with Paramount. Another point of interest is the fact that both studios have their own animation divisions, so if ever they were to partner with DreamWorks, they’d have to coordinate on the right release dates for their toons in order to avoid conflicts of interest. DreamWorks also wants to hold on to all the rights and revenue for their movies on TV and digital, including Netflix. This is probably one of the reasons why the partnership with Paramount fell through, since Paramount is currently getting a portion of revenue when DreamWorks’ properties air on HBO.