DreamWorks Animation is in final talks with 20th Century Fox and Sony Pictures to zero in on a distributor to replace Paramount after its self-imposed Labor Day deadline, reports the Los Angeles Times. Paramount and DreamWorks have been partners since 2006, through hits such as Kung Fu Panda, Puss in Boots and Madagascar 3. However the two entities couldn’t come to terms for a contract renewal. Paramount currently takes 8% of revenue generated by DreamWorks Animation movies.
According to the business section article, neither Fox nor Sony is willing to commit to a multi-year, worldwide deal. Also causing headaches is that fact that both Sony and Fox have their own animated pipelines and the two studios need to come to settle on the right release dates for all their toon titles. DreamWorks also wants to hold on to all deal-making rights and revenue for its movies on TV and digital platforms, including Netflix. Currently, Paramount gets a portion of the revenue when DreamWorks pics air on HBO.
After acquiring the Classic Media library, DreamWorks plans to develop its own family entertainment cable channel and wishes to hold on to the rights of tis movies on other TV outlets. The studio also wishes to keep its digital distribution rights, such as video-on-demand and download-to-own.