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Dreamworks Signs 5-Year Deal With Fox Studios

The companies are also discussing the distribution of cable programs


Dreamworks Animation (NASDAQ:DWA) has a new distributor for its films.

The company announced on Monday that its has signed a five-year deal with News Corp.’s (NASDAQ:NWSA) 20th Century Fox Studios that executives say will save both companies money on digital distribution, Reuters noted.

Apple Received Free Advertising in 42% of Movies in 2011
Apple Received Free Advertising in 42% of Movies in 2011

Under the terms of the deal, which is similar to a prior agreement with Viacom‘s (NASDAQ:VIAB) Paramount Studios, Fox will receive 8% of the revenue of each film it distributes.

Paramount is now looking to develop its own slate of animated films.

The agreement takes effect in 2013. Dreamworks and Fox are also discussing a possible distribution deal relating to programming for family cable networks.

Shares of Dreamworks Animation and News Corp. rose about 1% on the news, while Viacom shares inched up fractionally in Tuesday afternoon trading.

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