Will the success of Rango mean trouble for DreamWorks?
Mar. 4, 2011
Most estimates have RANGO opening this weekend with the biggest numbers of the year so far - around $50 million for the first three days. That's great news for Paramount and Nickelodeon who teamed up for the ILM-animated film from director Gore Verbinski. It's not such good news for DreamWorks who has a long-standing distribution deal with Paramount that expires in 2012. If Paramount can create and release successful animated movies on their own, what do they need DreamWorks for?
As part of their renegotiation, DreamWorks head Jeffrey Katzenberg was looking to reduce the per-picture distribution fee they pay Paramount, which currently stands at 8%. Paramount was unwilling to take a reduced fee and the success of RANGO would give them the leverage to turn down any deal that would bring them less than their current deal. Previously DreamWorks held a good deal of the cards because Paramount was the only major studio who wasn't releasing their own in-house animated films.
If RANGO opens at more than $50 million, it could give them the power to wish DreamWorks the best of luck elsewhere. The last film that DreamWorks released was MEGAMIND, which opened to only $46 million. Paramount has been quietly working on their own private animated slate, which will include a new SPONGEBOB SQUAREPANTS movie, Steven Spielberg's THE ADVENTURES OF TINTIN and a RANGO sequel.
But worry not - surely DreamWorks Animation isn't going anywhere. It's highly likely that Paramount and DreamWorks will reup their deal but it will likely mean that DreamWorks will have to consider cutting the budgets on their highly expensive films.
| Source: | LA Times |
|---|
PS
I hope more studio release quality movies like this. Miguelito better start killing a whole lot of bitches because it will be hilarious if Disney buys out Dreamworks animation studio.
PS
I hope more studio release quality movies like this. Miguelito better start killing a whole lot of bitches because it will be hilarious if Disney buys out Dreamworks animation studio.
RANGO is amazing ...
Regardless, Dreamworks needs some healthy competition besides Pixar anyway, it can only make everything better!
Regardless, Dreamworks needs some healthy competition besides Pixar anyway, it can only make everything better!
PS
No Use Cryin'
That's for my gun!
It's gonna be rough
Fuck Paramount
Furthermore, I also doubt Dreamworks is going anywhere with Paramount. The two have been together for too long, and the last thing Paramount would want to do is jeopardize rights to franchises such as Transformers, etc.
And on a final note,
Furthermore, I also doubt Dreamworks is going anywhere with Paramount. The two have been together for too long, and the last thing Paramount would want to do is jeopardize rights to franchises such as Transformers, etc.
And on a final note, Paramount sold Iron Man this year, so that's another franchise they lost. To me it wouldn't really make any sense to cut and run just because a few movies have done well without them. Keep being partners and profit together.