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DreamWorks SKG is the brainchild of renowned film director Steven Spielberg. The company is currently advancing a negotiation to distribute its films through Disney.
Universal Studios discontinued negotiations with the production company despite a standing longtime partnership. Apparently the talks fell through after the smaller studio “demanded material changes to previously agreed upon terms.”
According to a person familiar with the matter these material changes consisted essentially of more money. As well as an attempt by DreamWorks to get Universal to put DreamWorks films through its pay-TV deal, instead of DreamWorks coming in with its own pay-TV deal, as had originally been proposed, reports the LA Times.
Should negotiations go through both companies stand to gain a much needed lift in terms of production. Spielberg’s company is having trouble collecting the funds necessary to re-build the study; while Disney marked an income drop of 64 percent in the most recent quarter. In DreamWorks’s case, Spielberg has even gone so far as utilizing his own money to buy the company some time.
Disney also stands to gain from the quality films produced by the DreamWorks Company. In recent years Disney has fallen from grace. Their films have not received the usual critical support that has marked the company’s history and, as the New York Times indicates: “Disney has room on its schedule to accommodate the four to six films DreamWorks plans to produce. In 2006, Disney limited the number of movies it makes to about 12 from as many as 20 in previous years, choosing to focus more intently on family films made on the Walt Disney Pictures brand.”
By: Alberto Ramos Cordero
Posted February 6th, 2009 by Alberto
