DreamWorks Animation

by Ian Tecklin

DreamWorks Animation SKG

Location
1000 Flower Street, Glendale, California 91201
(818)-695-5000 | http://www.dreamworksanimation.com/

 

About
DreamWorks Animation SKG is a publicly traded animation studio that produces animated feature films, television series, and live entertainment. The company strives to produce two or three animated feature films a year that offer its audiences original stories and high-quality visual imagery, with the hope of capturing the imaginations of its audiences.

 

Brief History
DreamWorks SKG was founded in 1994 by Steven Spielberg, Jeffery Katzenberg, and David Geffen. After signing a co-production deal with Pacific Data Images (PDI) in 1995, the studio went on to release its first film, Antz, in 1998. In 2000, DreamWorks SKG launched a new
Jeffrey Katzenberg, Steven Spielberg, and David Geffendivision, DreamWorks Animation, with the intention of producing two types of animated feature films: stop-motion and CG. In 2004, after a series of highly successful computer-animated films, including Shrek, Shrek 2, and Shark Tale, the company stopped producing stop-motion, hand-drawn films, and instead focused on releasing only CG animated films. Most importantly, it was in late 2004 that the division separated and became a publicly traded company named DreamWorks Animation SKG, Inc. (NASDAQ: DWA), headed by Jeffrey Katzenberg. Subsequently, in 2006, DreamWorks Animation entered into a distribution agreement with Paramount Pictures, which will last until the end of 2012. Since its inception in 2004, DreamWorks Animation has released 25 animated feature films, all of which have an average gross of over $400 million, and a combined gross of over $10 billion worldwide. [1]

 

Key Executives
Jeffrey Katzenberg, Chief Executive Office and Director
Lew Coleman, President and Chief Financial Officer
Ann Daly, Chief Operating Officer
Anne Globe, Chief Marketing Officer
Heather O’Connor, Chief Accounting Officer
Andrew Chang, General Counsel and Corporate Secretary
Rich Sullivan, Head of Corporate Finance
Daniel Satterthwaite, Head of Human Resources
http://ir.dreamworksanimation.com/management.cfm

 

Major Competition
Pixar Animation Studios – http://www.pixar.com/
Blue Sky Studios – http://blueskystudios.com/
Walt Disney Animation Studios – http://www.disneyanimation.com/
Sony Pictures Animation – http://www.sonypicturesanimation.com/

 

Finances
For all of 2011, DreamWorks Animation SKG had a revenue of $706 million, net income of $110 million, total assets of $1.779 billion, and total equity of $1.357 billion [2]. More recently, DreamWorks Animation released its third quarter 2012 financial results on November 1, 2012. For the quarter, the company reported total revenue of $186.3 million and net income of $24.4 million, which is up from 2011’s third quarter results, which listed a revenue of $160.8 million and net income of $19.7 million [3]. The improvement in this quarter’s results are primarily due to the box office success of Madagascar 3: Europe’s Most Wanted, which grossed over $740 million at the worldwide box office.

 

Recent News
July:
July 23, 2012
DreamWorks Animation SKG announces its acquisition of Classic Media for $155 million cash. Classic Media is an animation studio and production company that has the rights to classic properties including Casper the Friendly Ghost, Rocky & Bullwinkle, Lassie, The Lone Ranger, George of the Jungle, and Where’s Waldo. With this acquisition, DreamWorks Animation can now implement Classic Media’s large and diverse library of characters across its array of businesses, including feature films, television series, live entertainment, consumer products, and theme parks. Classic Media will become a division of DreamWorks Animation SKG, and will be renamed DreamWorks Classics. For the full article, click here [4].

 

August:
August 7, 2012
DreamWorks Animation SKG announces its plans to develop an entertainment district in Shanghai, China. The district will be called The Dream Center, and will cost an estimated $3.1 billion to construct. Within the district will be theaters, restaurants, shops, performance halls, and an entertainment area. The Dream Center is beneficial for both China and the United States. For China, it strengthens the country’s media industries and can have a positive effect on the economy. For the United States, it can increase revenue for American films and products, and target a growing Chinese population. In addition to promoting DreamWorks Animation properties, The Dream Center will also be home to Oriental DreamWorks, a $350 million animation studio, where only animated films for China will be produced. The Dream Center is expected to be completed in 2016. For the full article, click here [5].

 

August 20, 2012
DreamWorks Animation leaves Paramount Pictures and has hired 20th Century Fox as its distributor. Since its inception in 2004, DreamWorks Animation has been in a distribution agreement with Paramount, until the agreement’s scheduled termination in 2012. Since DreamWorks Animation does not have the resources to market and release its films on a global basis, it needs the help of a large studio. According to the report, Fox will receive an 8 percent fee for handling theatrical, DVD, and international distribution. The decision to enter into a distribution agreement with 20th Century Fox is surprising given the fact that Fox already has a successful animation studio called Blue Sky Studios, which has produced such hits as Rio and the Ice Age franchise. For the full article, click here [6].

 

September:
September 9, 2012
DreamWorks Animation releases its film schedule, which includes a slate of 12 films through 2016. The titles of the films are The Croods, Turbo, Mr. Peabody & Sherman, Me And My Shadow, How to Train Your Dragon 2, Happy Smekday!, The Penguins of Madagascar, Trolls (working title), B.O.O.: Bureau of Otherworldly Operations, Mumbai Musical (working title), Kung Fu Panda 3, and How to Train Your Dragon 3. DreamWorks Animation typically releases two to three films a year, however, with the new schedule, the company will release three to four films a year, an ambitious increase. For the full article, click here [7].

 

October:
October 17, 2012
DreamWorks Animation SKG CEO, Co-Founder and Director Jeffrey Katzenberg visits the S.I. Newhouse School of Public Communications at Syracuse University. Mr. Katzenberg came to Newhouse as part of the USA TODAY CEO Forum, moderated by USA TODAY’s Mike Snider. During the event, Mr. Katzenberg discussed stories from throughout his career, talked about the current state of the entertainment industry and where it is heading, and offered advice on careers in the entertainment industry. For a full recap of the event, click here [8].

 

November:
November 1, 2012
DreamWorks Animation SKG releases its Q3 financial results. According to the report, total revenue was $186.3 million and net income was $24.4 million (up from 2011 Q3 revenue of $160.8 million and net income of $19.7 million). In the quarter, regarding feature films, Madagascar 3: Europe’s Most Wanted contributed approximately $47.1 million of revenue, Puss In Boots contributed $44.8 million of revenue, Kung Fu Panda 2 contributed $9.0 million, and Megamind contributed $0.7 million. For a summary of the third quarter financial report, click here [9].

 

November 21, 2012
DreamWorks Animation releases Rise of the Guardiansa film about notable childhood figures (Santa Claus, Jack Frost, Easter Bunny, Tooth Fairy, and Sandman), who team up to fight and stop the Boogey Man from hurting children. The film debut to a disappointing $32.3 million over the five-day Thanksgiving weekend. In fact, the opening is the lowest for a DreamWorks Animation film since 2003’s Sinbad: Legend of the Seven Seas. The film cost an estimated $145 million to produce. Though Rise of the Guardians will not be a success at the box office, DreamWorks Animation’s next three films are all original stories, and given the company’s track record with original tales, the films should do well. For the full box office report, click here [10]. 
Upcoming Events
The Croods – March 22, 2013. To view the trailer, click here.
Turbo – July 19, 2013. To view the poster, click here.
Mr. Peabody & Sherman – November 1, 2013. To view the first-look image, click here.

 

Sources
[1] Box Office Mojo http://www.boxofficemojo.com/franchises/chart/?id=dwanimation.htm
[2] DreamWorks Animation SKG, Inc.                                                                             http://files.shareholder.com/downloads/DWA/2039658139x0x563198/3224AB5D-241A-400B-BF77-702A544925C1/DWA_2011_Annual_Report.pdf
[3] DreamWorks Animation SKG, Inc. http://ir.dreamworksanimation.com/releasedetail.cfm?ReleaseID=718066 
[4] Eriq Gardner http://www.hollywoodreporter.com/news/dreamworks-animation-classic-media-acquisition-155-million-353014
[5] David Barboza and Brooks Barnes http://www.nytimes.com/2012/08/08/business/global/08iht-park08.html?_r=0
[6] Brooks Barnes  http://mediadecoder.blogs.nytimes.com/2012/08/20/dreamworks-animation-leaves-paramount-for-20th-century-fox-as-distributor/
[7] Nikki Finke http://www.deadline.com/2012/09/dreamworks-animations-release-schedule/
[8] Mike Snider http://www.usatoday.com/story/tech/2012/10/22/ceo-forum-dreamworks-jeffrey-katzenberg/1646191/
[9] DreamWorks Animation SKG, Inc. http://ir.dreamworksanimation.com/releases.cfm
[10] Box Office Mojo http://www.boxofficemojo.com/news/?id=3574&p=.htm

Comments are closed.