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Tag: Jeffrey Katzenberg

  • DreamWorks Animation restructures film biz; cuts 500 jobs

    DreamWorks Animation restructures film biz; cuts 500 jobs

    MUMBAI: In a major restructuring exercise, DreamWorks Animation will be cutting down on the number of movies it will produce each year, which in turn will lead to a loss of approximately 500 jobs across all locations and all divisions of the studio.

     

    Following a full review of the business, the company will focus its feature production from three films per year down to two, maximize its creative talent and resources, reduce costs, and drive profitability. DreamWorks Animation is implementing this plan to restructure its core feature animation business to ensure the consistent and profitable delivery of films. 

     

    Under the leadership of newly appointed co-presidents of feature animation Bonnie Arnold and Mireille Soria, the studio’s core feature animation production will now focus on six specific movies for the next three years – one original film and one sequel each year – including Kung Fu Panda 3 (18 March, 2016), Trolls (4 November, 2016), Boss Baby (13 January, 2017), The Croods 2 (22 December, 2017), Larrikins (16 February, 2018) and How to Train Your Dragon 3 (29 June, 2018). Captain Underpants, which will be produced outside of the studio’s pipeline at a significantly lower cost, is scheduled for release in 2017. The company’s 2015 release, Home, will premiere domestically on 27 March.

     

    “The number one priority for DreamWorks Animation’s core film business is to deliver consistent creative and financial success. I am confident that this strategic plan will deliver great films, better box office results, and growing profitability across our complementary businesses,” said DreamWorks Animation CEO Jeffrey Katzenberg.

     

    DreamWorks expects to incur a pre-tax charge of approximately $290 million in connection with the restructuring and related items. These costs are expected to be incurred primarily in the quarter ended 31 December, 2014, with the remainder in 2015 and 2016. The plan will result in total cash payments of approximately $110 million incurred primarily in 2015. The restructuring plan is expected to be substantially complete by the end of 2015 and expected to result in annualized pre-tax cost savings of approximately $30 million in 2015, growing to roughly $60 million by 2017.

     

  • GroupM takes over 49% stake of Haworth

    GroupM takes over 49% stake of Haworth

    MUMBAI: Haworth, an independent and employee-owned marketing and media agency based in Minneapolis, has announced a strategic partnership with GroupM, the media investment management division of WPP.

     

    Haworth will continue to offer personal, high-touch, creative-driven media – now backed by the industry leader in tools and data, thus linking the art of consumer connections with the most advanced marketplace analytics.

     

    “We believe this is a completely new, one-of-a-kind partnership that will bring tremendous value to our clients and our team,” said Haworth CEO Gary Tobey. “Our differences and assets will complement each other while Haworth’s culture and what we’ve built remains intact.”

     

    Haworth and its clients will benefit from full access to GroupM’s resources in digital, analytics, trading and proprietary technology and tool development.  GroupM will also provide a global expansion platform for Haworth and its clients.  The media agency will take a 49 per cent stake in Haworth.

     

    “We’ve admired what Gary and his team has done for many years,” said GroupM global chairman Irwin Gotlieb.  “We believe we can add to the compelling Haworth proposition through GroupM’s tools, technology, insights and trading scale.  And in turn, GroupM’s agencies and clients can benefit from Haworth’s proven expertise in integrating brands into popular culture and content.” 

     

    Haworth clients are happy about the new partnership with GroupM. DreamWorks Jeffrey Katzenberg said, “We’ve enjoyed a remarkable partnership with Gary Tobey and his team at Haworth over the years.  Their creativity and commitment to innovation has earned them great respect within the entertainment community – and this newest innovation has great potential.” 

     

    Omar Johnson, CMO at Beats Electronics CMO Omar Johnson added, “Our marketing strategy at Beats requires us to break the rules and challenge convention, which is why Haworth’s culture meshes so well with ours.  Their new model for media takes it to the next level as we continue to grow our global footprint.”

     

    Founded in 1970, Haworth provides strategic marketing and media solutions to blue-chip clients and iconic brands, including Target, Ben & Jerry’s, Beats by Dre, Honeywell, DreamWorks, The Oscars and Berkshire Hathaway Travel Protection.  Haworth has reported media billings of $700 million.

  • Content explosion an opportunity for TV

    Content explosion an opportunity for TV

    CANNES: “It is all about opportunities and it isn’t simple. Opportunity involves risk and in many instances, feels threatening,” said DreamWorks Animation CEO Jeffrey Katzenberg.

    Named ‘Personality of the Year’, Katzenberg was delivering the key note speech at Mipcom. “If one person seizes a new opportunity, then someone else has to lose ground,” he added.

    Speaking about the evolving television, film and online video markets, he said: “Over the next two years, there will be an explosion of content on the web. In the 40 years I’ve been in the entertainment industry, I don’t think there’s ever been a time filled with so much new and unique opportunity for the world of television.”

    After a successful stint in the film industry, DreamWorks has expanded its footprint to television production and distribution. The production house recently struck a deal with Netflix for providing more than 300 hours of original content, acquired the YouTube multi-channel network AwesomenessTV and partnered with RTL Disney Fernsehen. 

    Dispelling fears that the era of TV was coming to an end, Katzenberg said, “Linear TV will do just fine, even with the internet explosion.”

    Taking the audience through historical advancements since the invention of the printing press in 1445, he said, “Throughout history, it has never been seen that one form of media was replaced by the other newly launched technology.”

    A firm believer in the concept that each technology imparts a new role to that which has come before it, he said: “Because there are so many emerging distribution options, there will inevitably be more demand for content.” 

    Regarding the AwesomenessTV acquisition, Katzenberg said: “The deal gets us directly in touch with our teen audience in a way that we simply can’t with movies or TV shows. Just like an additional layer in a parfait, the entire media experience simply becomes richer and more satisfying.”

    He pitched for mobile entertainment as a solution to the problem of ‘waiting’ saying: “Up until very recently, we literally twiddled our thumbs while we waited. There was nothing else to do. Now our thumbs have a higher purpose than to twiddle. Through touch screens, we actually now can touch the world. Thanks to these devices, ‘waiting’ as we know it, is dead.”

    “Mobile has become an asset to traditional TV, rather than a threat. There is a crossover phenomenon happening in the relationship between mobile and linear TV. For instance, AwesomenessTV created a show by compiling the best clips from its YouTube channel and airing it on Nickelodeon. Mobile serves as an incubator of talent and concepts, driving additional traffic to traditional TV.”

    Katzenberg concluded his keynote by expressing a need for great storytellers. “Storytelling – in any medium – is very difficult, and great storytellers are difficult to find. Whether the media is old or new, content continues to reign as king. And this is because – like all royalty – it is rare. Once the touch of great storytellers is added, touch screens can take us anywhere and everywhere,” he rounded off.

  • Mipcom 2013: Bigger and Better

    Mipcom 2013: Bigger and Better

    CANNES: If you thought 1,200 participants at Mip Junior was big, think again. 

    We’re talking 13,000 participants from 100 countries; 4,400 buyers with 40 sessions and keynotes; 1,700 exhibitors across five exhibition floors; and approximately 100 Indian companies with their biggest formats. Mipcom 2013 is finally here and how!

    Starting 7 October at the resplendent Palais des Festivals in Cannes, the four-day fest will see some of the biggest content deals being sealed. The Indian contingent will see Star TV with its biggest format Mahabharat and Zee TV with its new offering Buddha among others. Events to watch out for include the key note address by Zeel MD and CEO Puneet Goenka along with Dreamworks Animation CEO Jeffrey Katzenberg.

    So what’s the Mipcom allure really? For one, launching and selling programmes and expanding sales to new platforms. Second, discovering and acquiring the newest and best content in every genre and platform. Third, finding co-production partners and new international channels to enrich offerings and last but not the least, expanding industry knowledge, understanding trends and discovering new business models.

    And while Cannes gears up to welcome a host of participants from around the world, indiantelevision.com preps up to keep you up-to-speed with what’s happening out there…

  • YouTubes just the beginning for AwesomenessTV

    YouTubes just the beginning for AwesomenessTV

    CANNES: “Kids and teens are on YouTube and while adults like to eat meals, kids prefer snacks. And they can snack the whole day,” said AwesomenessTV CEO and founder Brian Robbins in his media keynote, adding, “Deliver what they want, when they want, and also constantly refresh it.”

    It was Robbins’ experience of the way his own kids consumed content that led to the launch of AwesomenessTV – a YouTube exclusive channel for kids and teens – last year. It was purchased in May this year by Jeffrey Katzenberg’s DreamWorks Animation.

    Robbins said it was important to create videos that were funny, creative and yet relevant to kids and that uploading these videos on YouTube was the best form of engaging kids.

    About the online blast, Robbins said: “What’s happening online today is similar to what happened on TV 25 years ago. We want to engage in two-way communication. Every producer should be aware of their target audience. We know who our viewers are and what they’re telling us.”

    While AwesomenessTV boasts one million subscribers and 200 million video views, YouTube is just the beginning for Robbins. “We are going to have a presence everywhere. We are currently working on a mobile app and also PlayStation access. We have a big network in UK and also see opportunity in Brazil. We are looking at creating new audiences every time,” he said.

    At the same time, Robbins sees great opportunity in starting something on YouTube and building an audience and then taking it to TV. “We are giving Dreamworks another platform to build its audience and also market its movies,” he said.

    Comparing AwesomenessTV with say a Nickelodeon, Robbins said while Nick could produce only two pilots to ensure success, they could produce multiple pilots a day. Nickelodeon apart, Robbins argued that most channels today do not create enough fresh content. “One can see only four to five hours of fresh content on the channels. Mobile gives kids options to choose from,” he said.

  • Dream Works Animation to boost its television and digital presence

    Dream Works Animation to boost its television and digital presence

    MUMBAI: The Californian Animation giant Dream Works Animation (DWA) is reportedly on the move to revamp and re-position itself as a television power. The company told analysts that it will produce 1,200 TV episodes over the next five years, which CEO Jeffrey Katzenberg says “will give us a significant footprint across the global TV landscape”.

    He commented that DWA is now on the path to becoming one of the biggest producers and distributors of television following the multi-year agreement with Netflix to create 300 hours of original content for the online streaming platform. DWA has also made a deal with Germany‘s Super RTL to make up to 1,100 half-hours of programming.

    Katzenberg adds that the company should see $100 million in revenues from TV this year, about half of which will come from titles in the Classic Media library which include characters like Casper, The Rocky and Bullwinkle Show, Mr. Peabody & Sherman and George of the Jungle Classic Media was bought last year by DWA.

    Adding details to this, DWA also revealed that it is projecting at least $200 million in TV revenue per year with gross profits of around 30 per cent, close to what it sees from its films post 2015. Revenue from the Netflix and Super RTL deals won‘t vary depending on the performance of different titles.

    The numbers don‘t include benefits from sales of licensed merchandise, the library value of shows, or progress from its recently acquired online video service AwesomenessTV. The company isn‘t ready yet to create a separate business line for television, but will consider the change.

  • YouTube says TV is passe; announces 1 bn unique visitors per month

    YouTube says TV is passe; announces 1 bn unique visitors per month

    MUMBAI: For long, traditional linear TV professionals have been kind of pooh-poohing the emergence of YouTube as a challenge to their traditional business model and as the destination for video consumption. Google executive chairman Eric Schmidt however cautions TV executives that the TV vs YouTube – if ever there was one – is over and has conclusively swung in favour of the online streaming portal.

    Speaking to advertisers in New York on Wednesday night at an initiative titled NewFronts (digital media‘s version of the TV tradition of promoting programming and selling ads); he disclosed that YouTube was now crossing a billion visitors a month. Last month‘s figures from YouTube claimed that almost one of every two people on the World Wide Web now uses the video streaming site, making it the third largest country in the world behind China and India.

    Google executives at the event said that visitors are watching more than six billion hours of video content on YouTube every month. That‘s a humungous number, which equals to one hour a month for every human on earth. Just three months ago, the figure was four billion. Schmidt expects the figure to go up soon and told attendees to wait “till the numbers rise to six to seven billion. The future is now for YouTube,” he said.

    Executives point out that a good proportion of the visitors are those under forty – the connected to the internet generation; and that there is no better medium to reach out to them than YouTube.

    “I thought that YouTube was like TV, but it isn‘t. I was wrong,” said YouTube‘s global head of content Robert Kyncl, “TV is one-way. YouTube talks back. TV means reach. YouTube means engagement.” He further added.

    Schmidt explained that YouTube is not a replacement for something we know. “It‘s a new thing that we have to think about, to program, to curate and build new platforms,” he pointed out.

    DreamWorks CEO Jeffrey Katzenberg made an appearance at the event to announce that his company had earlier in the day signed a deal to acquire AwesomenessTV, a popular teen focused YouTube network, for $33 million.

    YouTube meanwhile brought in its troops to coax brands to snap up media on the site, put in sponsorship dollars behind it and build channels. They cited a study saying that brands “that invest about 10 per cent to 15 per cent of their media budget on YouTube post a one per cent to three per cent sales rise.

  • DreamWorks Animation reports net loss of $36.4 mn for the fiscal

    DreamWorks Animation reports net loss of $36.4 mn for the fiscal

    MUMBAI: DreamWorks Animation has reported total revenue of $749.8 million and a net loss of $36.4 million for the fiscal ended 31 December 2012.

    For the fourth quarter of the fiscal, the company reported total revenue of $264.7 million and a net loss of $82.7 million.

    Impacting DreamWorks Animation‘s fourth quarter and full-year 2012 results is a charge of approximately $165 million, which includes a write-down of film costs for ‘Rise of the Guardians‘ in the amount of $87 million, charges totaling $54 million related to the company‘s decision to return ‘Me And My Shadow‘ back to development, a write-off of a number of other development projects in the amount of $20 million and a charge of $4.6 million related to restructuring activities.

    DreamWorks Animation CEO Jeffrey Katzenberg said, “While ‘Rise of the Guardians‘ did not achieve the level of box office success that we have come to expect from a DreamWorks Animation film, we have made several changes to our future slate that we believe will position us well for the next two years. We are now looking ahead to our next release – and our first under our new distribution agreement with Twentieth Century Fox – ‘The Croods‘ on March 22, 2013.”

    ‘Rise of the Guardians‘, which has grossed $302.3 million at the worldwide box office, contributed revenue of $6.1 million to the quarter.‘

    ‘Madagascar 3: Europe‘s Most Wanted‘, which has grossed $746.6 million at the worldwide box office, contributed revenue of $95.2 million to the quarter, primarily from home entertainment and international box office. The film reached an estimated six million net home entertainment units sold worldwide through the end of the fourth quarter, net of actual and estimated future returns.

    ‘Puss In Boots‘ contributed $10.5 million of revenue to the quarter, primarily from pay television and home entertainment. The film reached an estimated 6.2 million home entertainment units sold worldwide through the end of the fourth quarter, net of actual and estimated future returns.

    ‘Kung Fu Panda 2‘ contributed $4.8 million of revenue to the quarter, primarily from home entertainment. The film reached an estimated 6.5 million home entertainment units sold worldwide through the end of the fourth quarter, net of actual and estimated future returns.

    Library, which now includes ‘Megamind‘, contributed approximately $63.4 million of revenue to the quarter. Other items, including holiday television specials and live theatrical properties, contributed approximately $53.1 million of revenue to the quarter. Classic Media contributed approximately $31.6 million of revenue to the quarter.

    Costs of revenue for the quarter equaled $354 million. Selling, general and administrative expenses totaled $36.5 million, including approximately $3.1 million of stock-based compensation expense.

    The company‘s income tax benefit for the fourth quarter was $42.4 million. The company‘s combined effective tax rate – the actual tax rate coupled with the effect of the Company‘s tax sharing agreement with a former stockholder – was approximately 34.3 per cent for the fourth quarter.

    The company‘s full year 2013 results are expected to be driven primarily by the performance of ‘The Croods‘, which is scheduled to be released on 22 March and ‘Turbo‘, which is scheduled to be released on 19 July.

  • Netflix teams up with DreamWorks for original Kids series

    Netflix teams up with DreamWorks for original Kids series

    MUMBAI: Online content platform Netflix has partnered DreamWorks Animation to create the first ever Netflix Original Series for kids based on the highly-anticipated DreamWorks Animation movie Turbo.

    The Netflix series titled Turbo: F.A.S.T. (Fast Action Stunt Team) debuts exclusively this December in the United States and across the globe in the 40 countries where Netflix offers its service.

    “Families love Netflix, so creating an original series for kids was a natural for us. And we‘re doing it in a big way by adapting Turbo, this year‘s DreamWorks Animation summer tent pole movie,” said Netflix Chief Content Officer Ted Sarandos.

    “DreamWorks Animation has a long track record of creating incredibly successful characters and stories that delight people of all ages. We‘re thrilled to add Turbo the series as well as all new DreamWorks Animation films, starting with their 2013 slate, to Netflix.”
    “Netflix boasts one of the largest and fastest-growing audiences in kid’s television. They pioneered a new model for TV dramas with House of Cards, and now together, we‘re doing the same thing with kids‘ programming,” said DreamWorks Animation‘s CEO Jeffrey Katzenberg.

    DreamWorks Animation‘s Turbo is a high velocity 3D comedy about an ordinary snail who dares to dream big – and fast. After a freak accident miraculously gives him the power of super-speed, Turbo kicks his dreaming into overdrive and embarks on an extraordinary journey to achieve the seemingly impossible: competing in the Indianapolis 500.

    The film, which stars Ryan Reynolds, Paul Giamatti, Michael Pena, Luis Guzman, Bill Hader , Richard Jenkins, Ken Jeong, Michelle Rodriguez , Maya Rudolph, Ben Schwartz, Kurtwood Smith, Snoop Lion and Samuel L. Jackson, comes to theaters on 19 July.

    Turbo‘s pursuit of racing greatness continues in Turbo: F.A.S.T.: an episodic animated television series that picks up where the feature film leaves off. It showcases the world-traveling exploits of our snail hero and his tricked-out racing crew as they master outrageous new stunts and challenges any villain unlucky enough to cross their path.

    In addition to the original TV series Turbo: F.A.S.T., new DreamWorks Animation feature titles will be made available for Netflix members in the U.S. to watch beginning with the studio‘s 2013 film line-up.

  • DreamWorks Animation inks distribution deal with Twentieth Century Fox

    DreamWorks Animation inks distribution deal with Twentieth Century Fox

    MUMBAI: American animation studio DreamWorks Animation has entered into a new five-year distribution agreement with Twentieth Century Fox.

    Under the terms of the agreement, Fox will assume certain marketing and distribution responsibilities in both domestic and international markets for all animated feature films produced by DreamWorks Animation for release in 2013 through 2017.
    Fox will receive a distribution fee on worldwide theatrical and home video gross receipts as well as on international television, and on certain digital businesses, including rentals, SVOD and EST.
    DreamWorks Animation will retain the rights to distribute its product in the domestic television windows without paying a fee to Fox.
    “Fox has long been an industry leader in both theatrical and home video thanks in large part to its well-integrated approach to distribution across a wide range of platforms around the globe,” said DreamWorks Animation CEO Jeffrey Katzenberg.
    “Jim Gianopulos and Tom Rothman have built a world-class distribution team and we are excited to apply their expertise, robust infrastructure and global resources so that DreamWorks Animation‘s films can reach their fullest possible potential over the next five years.”
    “DreamWorks Animation is a great company that makes terrific films and everyone here feels privileged and honored to have been chosen to distribute their marvelous work throughout the world,” stated Fox Filmed Entertainment CEOs and chairmen Jim Gianopulos and Tom Rothman.
    “We are particularly excited to add DreamWorks Animation‘s films to the strong and growing slate of movies from our outstanding Blue Sky Studios division, which is coming off another global blockbuster with Ice Age: Continental Drift, and has EPIC and RIO 2 in advanced production. Together we will be a dominant force in animated entertainment for years to come.”
    “Starting in 2013, DreamWorks Animation content will be distributed in the more traditional markets under a fee structure that is similar to our existing arrangement with our current distributor,” continued Katzenberg.
    “However, our new agreement with Fox presents more favorable economics overall for DreamWorks Animation because we are taking advantage of lower costs associated with the emerging digital distribution landscape and managing domestic television distribution in-house.”