Fox to distribute DreamWorks Animation slate

“Fox has long been an industry leader in both theatrical and home video thanks in large part to its well-integrated approach to distribution across a wide range of platforms around the globe,” DreamWorks Animation CEO Jeffrey Katzenberg said.

“[Fox Filmed Entertainment co-heads] Jim Gianopulos and Tom Rothman have built a world-class distribution team and we are excited to apply their expertise, robust infrastructure and global resources so that DreamWorks Animation’s films can reach their fullest possible potential over the next five years.”

“DreamWorks Animation is a great company that makes terrific films and everyone here feels privileged and honored to have been chosen to distribute their marvelous work throughout the world,” Gianopulos and Rothman said.

“We are particularly excited to add DreamWorks Animation’s films to the strong and growing slate of movies from our outstanding Blue Sky Studios division, which is coming off another global blockbuster with Ice Age: Continental Drift, and has Epic and Rio 2 in advanced production. Together we will be a dominant force in animated entertainment for years to come.”

“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,” Katzenberg continued.

“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.”

Under the terms of the agreement, 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 will retain the rights to distribute its product in the domestic television windows without paying a fee to Fox.

DreamWorks Animation’s Madagascar 3 has amassed approximately $564m worldwide through Paramount and remains in release internationally.