DWA rejects Paramount offer to extend distribution

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DreamWorks Animation SKG

DreamWorks Animation SKG

The board of DreamWorks Animation has turned down an offer by Paramount to extend its current distribution agreement for one more year.

Paramount’s deal with DWA expires at the end of 2012.

The distributor had offered to keep releasing DWA films for an 8% fee. However, Paramount wanted to receive more in the future, and DWA wants to pay a lower commission.

A spokeswoman for DreamWorks Animation declined to comment.

Last month, Paramount head Brad Grey announced that his studio would start its own animation division.

Although DWA is said to be looking at other distribution options, “nobody has been pitched to do distribution” for the studio, The Hollywood Reporter quoted an unnamed insider as saying. The animation firm “is not quaking in its boots going ‘Paramount is the only game in town’” because DreamWorks can deliver fees on films that usually gross in the hundreds of millions of dollars, the source added.

However, Warner Bros. isn’t interested in distributing DWA movies, “knowledgeable people who were not authorized to speak publicly on the matter” told the Los Angeles Times.

Meanwhile, the Hollywood Reporter source belittled Paramount’s announcement of an animation division, deriding it as a plan “to do low-rent movies.”

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