DreamWorks Distribution Deal to Boost Web Presence

By joining in Wal-Mart’s video streaming business, DreamWorks Animation SKG Inc. expands the availability of its animation films through digital distribution. The deal between the Glendale-based studio and the world’s largest retailer covers the 23-title film catalogue that includes the four “Shrek” films, “Madagascar,” “How to Train Your Dragon” and last year’s “Puss in Boots.” The studio has made no agreement related to future releases, company officials said. DreamWorks Animation joins other major Hollywood studios that already are making their films available through the Vudu streaming service owned by Wal-Mart. In March, Paramount Home Media Distribution, Sony Pictures Home Entertainment, Twentieth Century Fox Home Entertainment, Universal Studios Home Entertainment and Warner Bros. Home Entertainment announced their participation with Wal-Mart in Vudu. Films from those studios became available earlier this month at 3,500 stores. Vudu is based on Ultra Violet technology designed by a consortium of studios, consumer electronics manufacturers, retailers, cable TV networks, and others. DreamWorks Animation also makes its titles available through iTunes and signed a web streaming deal with Netflix that kicks in next year covering new films and television specials. “We support new technologies and services that expand the opportunities for consumers to enjoy our content,” said Kelley Avery, worldwide head of franchise strategy & distribution for DreamWorks Animation. “This is what the digital revolution is making happen in a big way: consumers can increasingly view content in whatever way best suits them.” Having offerings from all the major studios will only help in the acceptance of Vudu by the public, said Bob Lambert, a former chief executive with the Entertainment Technology Center at USC. Others seem to agree. In a report on the deal, Zacks Equity Research said the DreamWorks Animation titles will attract more movie fans to the Vudu service. That, in turn, will help the retailer drive movie sales, the firm said. “This initiative is expected to boost WalMart’s lackluster movie sales, which have been declining due to the presence of other forms of entertainment and online alternatives,” the report said. Vudu is a digital library that consumers can access after verification of ownership of a DVD or Blu-ray disc for viewing. The content can be viewed on devices enabled with Ultra Violet software. Wal-Mart’s service charges $2 for converting DVDs and Blu-ray discs, and $5 for upgrading DVDs to high definition. Consumers will have access to both physical and digital copies of films and that will extend the life of personal film collections, Avery said. “We believe it will help simplify the changing landscape,” she said. Research firm IHS Screen Digest forecasts that 2012 will mark the year that online viewing of movies in U.S. will surpass that of physical discs. Consumers will watch 3.4 billion films online, compared to the 1.4 billion in 2011, according to IHS Screen Digest. Viewings of DVDs and Blu-ray discs will decrease to 2.4 billion from 2.6 billion, the firm said.