Katzenberg Says DreamWorks DVDs are Like ‘Toys’28 May, 2009 By: Chris Tribbey
When you buy a DreamWorks Animation DVD or Blu-ray Disc, you’re not buying a home entertainment product, according to CEO Jeffrey Katzenberg and CFO Lew Coleman.
You’re buying a toy.
“Our movies are predominately purchased by moms and dads for a child. It’s not the same as a ‘movie’ purchase,” Katzenberg said May 28 during the Cowen & Company’s 37th Annual Technology Media & Telecom Conference in New York City. Katzenberg called DVD “a home run price value proposition.”
Comparing DreamWorks DVDs to the live-action movies consumers rent from Netflix, Blockbuster and Redbox, or pay for through VOD, Katzenberg said his company’s DVDs are long-term investments in children’s entertainment.
“The live-action DVD purchase is really challenging [in this economy],” Katzenberg said. “We’re not. We’re a toy purchase.”
His comments came as DreamWorks Animation SKG announced an aggressive feature-film slate through 2012, which includes sequels for the “Shrek,” “Madagascar” and “Kung Fu Panda” franchises, as well as the launch of the “How To Train Your Dragon” franchise next March.
Every DreamWorks film here on out will see a 3-D release, Katzenberg said, which includes Oobermind in 2010, The Guardians in 2011, and Puss In Boots and The Croods in 2012. The studio’s total release slate includes eight feature films through 2012, comprising five original films and three sequels.
“We believe sequels have many benefits,” Katzenberg said. “On the flip side, sequels leave less room for ideas.”
For the first quarter of 2009 (ended March 31), the studio posted recession-defying profit of more than $62 million.