“There does seem to be a lot of interest and a lot of opportunity” for the idea — and it’s something DreamWorks Animation is “actively talking about” with potential film distribution partners — CEO Jeffrey Katzenberg told analysts in a conference call to discuss company earnings. He had virtually no details about the plan, or his efforts to strike a distribution deal to replace the one with Paramount that expires at the end of this year. He offered, though, that “self distribution is not something we are pursuing right now.”
Related: DreamWorks Animation Q2 Earnings Fall Short Of Forecasts
But Katzenberg clearly wanted to impress analysts with the possibility of creating a channel following his recent $155M acquisition of Classic Media. “We have a bit of a gold mine here,” he says about Classic which has rights to baby boomer cultural icons including Archie, Casper the Friendly Ghost, The Lone Ranger, Lassie, Rocky & Bullwinkle, Gumby, Underdog, Fat Albert, Rudolph the Red Nosed Reindeer, Godzilla, He-Man, Dick Tracy, Frosty the Snowman, and Mr. Peabody & Sherman. “This will go a long way toward helping us to realize the idea of a DreamWorks branded channel.” The thinking appears to be in the early stages: Katzenberg says he’s not sure if a channel might be designed for the Internet or for pay TV, whether it would be just for domestic audiences or also go overseas — or even how much the company is prepared to invest. “We are in aggressive exploration I would say.” He says that with the success of DreamWorks’ animated films overseas “the brand has really begun to come into its own and has real value…That creates the opportunity for us to create a branded family channel.” Katzenberg says he hasn’t put his check book away. “We will look to acquire other [intellectual property] that fits” with its own properties as well as Classic Media’s. The recent purchase “will have a significant impact on DreamWorks as a business going forward.” It wasn’t enough to take investors’ eye off of the company’s lackluster Q2 earnings. DreamWorks shares are -8.3% in after-market trading.


Hello Jeffrey,
Don’t think anyone is truly listening anymore. What’s next, DWA dvd’s in Cracker Jack boxes?
Greed. Pure Greed.
This is all just smoke from Jeffrey in an effort to try and create leverage to renegotiate his Paramount deal. There is no need or room for a DWA branded network and with three of its biggest franchise properties (Madagascar, Kung Fu Panda & How to Train Your Dragon) already tied up in TV at Nickelodeon and Cartoon Network, there is no content other than the Classic Media properties to draw viewers to a DWA network. Classic couldn’t get most of the stuff they own or manage on network because it’s no good, or too old and there’s no way Jeffrey invests half a billion dollars to create and brand a new network based on the Classic IP.
Nickelodeon — owned by Viacom — is suffering lately in the ratings (TMNT might help change that as would getting rid of Cyma Zarghami), and so Jeffrey is puffing up his chest and blustering a bit as if he might steal away some of their audience by creating a network to compete with them. Unfortunately for Jeffrey Nickelodeon is a better brand than DWA and has vastly more IP to program than a DWA/Classic network. He’s playing the same game Paramount played with their announcement that they were starting a feature animation division (after the success of Rango). Just two dogs pissing at each other.
In the end DWA signs a new deal at Paramount that includes film distribution of DWA features, exclusive use of or first look rights to DWA feature properties for series on Nickelodeon and access to and use of the Classic Media IP for Nick as well. The deal will not be as favorable to DWA on the film distribution side as it has been but Jeffrey will save face by getting a bone tossed at DWA for the television IP.
Luken Communication’s struggling PBJ OTA kid-net’s (handful of sub-channel & LP/LD affiliates and on Sky-Angel) line up is 90% Classic Media Programing….boy, are they about to get screwed!
Hey! Why not build a Shrek Mall in New Jersey?!
NEVER under estimate JK. He has more sleeves and more tricks than most. When they say “it couldn’t be done” he does just that – and he will build his own network which is crucial to the success of the DWA brand. Talk about nine lives!
Can you say pop.com?