DreamWorks Animation SKG Inc. has picked Twentieth Century Fox as the distributor of its feature films beginning next year.

The five-year deal between the Glendale-based animation studio and Fox will pay Fox a distribution fee based on worldwide theatrical and home video gross receipts, international television, and certain digital businesses.

DreamWorks Animation retains the rights to distribute its product in domestic television windows without paying a fee to Fox.

Fox will replace Paramount Studios, which has released DreamWorks Animation content since 2006. Paramount was paid an 8 percent distribution fee.

Choosing Fox will assure that DreamWorks Animation films will receive their fullest potential, CEO Jeffrey Katzenberg said.

“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,” Katzenberg said in a prepared statement.

Mark R. Madler