Distribution channels - P4(a)

Distribution Channels - P4(a)

Meaning and Purpose -  DreamWorks relies on different other services of different companies to promote and distribute their products. They rely on the expertise of Fox in this area of Media specialism. There is a synergy between both DreamWorks, Fox and Paramount media companies which is mutually beneficial. 

(This information have been taken from this website page 6 : http://www.dreamworksanimation.com/2013ar/Dreamworks_2013_Annual_Report.pdf) 

On August 18, 2012, we entered into a binding term sheet with Fox, pursuant to which we have

agreed to license Fox certain exclusive distribution rights and exclusively engage Fox to render

fulfilment services with respect to certain of our animated feature films and certain other audiovisual

programs released after December 31, 2012. A detailed discussion of the Fox Distribution Agreement

is provided below. For our films first released theatrically on or prior to December 31, 2012, we are a

party to a distribution agreement (the “Paramount Distribution Agreement”) and a fulfillment

services agreement (the “Paramount Fulfillment Services Agreement” and, with the Paramount

Distribution Agreement, the “Paramount Agreements”) with Paramount and its affiliates. A detailed

discussion of the Paramount Agreements is provided below following the discussion of the Fox

Distribution Agreement.

DreamWorks uses social media to pull the audience in: 

( This information have been taken from this website: http://www.dreamworksanimation.com/store )

Fox Distribution Agreement

Term of Agreement. Under the Fox Distribution Agreement, we have agreed to license Fox the

exclusive right to distribute, and have engaged Fox to service, in each case on a worldwide

(excluding China and South Korea) basis, the following animated feature films and other audiovisual

programs: (i) our animated feature films that we elect to initially theatrically release during the fiveyear period beginning on January 1, 2013 (such five-year period, the “Output Term”) and with

respect to which we own substantially all of the relevant distribution rights (each, a “Qualified

Picture”), (ii) motion pictures that would be Qualified Pictures but for the fact that we do not own

substantially all of the relevant distribution rights, which we must offer Fox the right to distribute and

service and Fox has the option to distribute and service (each, an “Optional Picture”), (iii) our

animated feature films that were theatrically released by us prior to January 1, 2013 if and when such

films cease being subject to third-party distribution rights at any point during the Output Term (each,

an “Existing Picture”), (iv) as determined by us in our sole discretion, subject to certain exceptions,

audiovisual programs acquired by us as part of our recently completed acquisition of Classic Media

(each a “Classic Media Picture”) and (v) as determined by us in our sole discretion, subject to certain

exceptions, other audiovisual programs produced or acquired by us that are not Qualified Pictures,

Optional Pictures, Classic Media Pictures, Existing Pictures or live-action or hybrid feature-length

theatrical motion pictures (each, an “Other Picture”). Live-action or hybrid feature-length theatrical

motion pictures (other than Classic Media Pictures) are not subject to the terms of the Fox

Distribution Agreement. Each motion picture with respect to which rights are licensed to (and

serviced by) Fox under the Fox Distribution Agreement is herein called a “Licensed Picture.”

DreamWorks Animation is a huge company which cooperates with different retailers. It could be big film companies or it could be different groceries like Tesco. This is important fot this company to sell use different retailers, because the highest percentage of their income is based on merchandising, therefore they need to use avery big retailer which have an influence on some customers. This will improve not just DreamWorks's incomes, but it will help retailers to grow and expose their brand.
There are some pictures of those companies : 

Tesco - is an English grocery and general merchandise retailer which have been found in 1919 by Jack Cohen. This retailer helps DreamWorks pictures to sell some products like DVDs, toys, magazines and birthday cards. 

HMV -  is an English entertainment retailing company operating in the United Kingdom.  It was founded in 1921. This retailer helps DreamWorks pictures to sell some products like DVDs, toys, earphones ( which is made by DreamWorks ) and Computer games.

Paramount - is an American film studio, television production company and motion picture distributor. It was founded in 1912 by Adolph Zukor. This retailer helps DreamWorks pictures to sell films to public. 

The 20th Century Fox - is one of the six major American film companies. It was founded in 1915 by Joseph M. Schenck. It creates a computer - animated film, television shows and music entertainment as well.