The Nikkster's site is not sunny.
... [A]nalysts want to know how Katzenberg plans to distribute his films at the end of this year when his deal with Paramount expires. His silence about a potential replacement “leads us to believe that (he) may be seriously considering a self-distribution model, which would likely require some sort of capital raise, likely in the form of debt issuance” ...
The last ten years, I've watched DreamWorks Animation do a high wire act with a business model that requires it to turn out one hit film after another, and it's left me in awe.
As I've said before, the only other stand-alone company that performed the trick better was Pixar.
But now the marketplace is changing. More competition. More piracy. And the little silver disks aren't the hot sellers they used to be, for anybody. And DWA is out there all by its lonesome, the only company that isn't part of a big, fat entertainment conglomerate. (Jeffrey Katzenberg has maintained that he's happy being a solo corporation, but I've always believed that the goal was some sort of buyout. But hey, maybe I'm wrong.)
DWA's financial well-being is of concern to TAG because DWA is one of our largest contract studios, so DreamWorks future impacts our future. (Funny how that works.) I've thought for awhile that the features the studio produces have been on a steady, up-trending arc, creatively speaking, but will that be enough going forward?
Guess we'll find out.