Fox studio to distribute DreamWorks Animation films

The 20th Century Fox movie studio will distribute animated feature films from Kung Fu Panda maker Dreamworks Animation for the next five years, the studios announced on Monday.

Fox is taking over the role currently played by Viacom unit Paramount Pictures, which has been distributing Dreamworks Animation films for a fee of about 8 percent of revenue from each movie. Fox will distribute the films for the same fee, Dreamworks Anima­tion CEO Jeffrey Katzenberg told reporters on a conference call.

But the new arrangement is more favorable, he said, because both studios can take advantage of lower costs from digital distribution.

Under the existing deal, Paramount received about $40 million in 2011 from Dream­works Animation, according to a source familiar with the arrangement. Fox, a unit of News Corp, will distribute the studio's films for five years starting in 2013.

This includes next year's The Croods and Turbo. Fox has its own animated slate of films, including the successful Ice Age franchise.

The fourth Ice Age film has grossed $796.5 million worldwide since it hit theaters in June.

Katzenberg said he was also talking with Fox about the pos­sibility of distributing a family-oriented cable channel he envi­sions using characters from Classic Media such as Casper, Rocky and Bullwinkle, and Lassie alongside Dreamworks fran­chises such as Shrek and Kung Fu Panda. Katzenberg's com­pany acquired Classic Media in July for $155 million.