While live action isn't a nightmare for DreamWorks Animation SKG, this company definitely prefers CGI. DreamWorks Animation has produced more than 30 computer-animated family-friendly features -- including high-earning hits such as Shrek the Third, Shrek 2, and Madagascar. (Its Shrek 2 is one of the highest grossing films of all time at the domestic box office.) The studio's movies are distributed and marketed by Twentieth Century Fox. DreamWorks Animation earns most of its revenues from distributing its films in theaters and ancillary markets such as home entertainment and cable and broadcast TV. In 2004 former parent DreamWorks spun off DreamWorks Animation as a separate company.
DreamWorks Animation's headquarters, where the majority of its employees work (including most animators and production staff), is located in Glendale, California. The company also has a 200,000-square-foot production facility in Redwood City, California. DreamWorks Animation maintains offices in Los Angeles, California; New York City; Nashville, Tennessee; and London, UK.
While feature films are the company's bread and butter, DreamWorks Animation also earns royalty-based revenues from the licensing of its characters to consumer product and home entertainment companies.
Sales and Marketing
During fiscal 2014 DreamWorks Animation spent $31.1 million on advertising and marketing expenses.
The studio reported revenue of $684.6 million for fiscal 2014. That was a decrease of about $22 million compared to the prior fiscal period. The drop in revenue combined with high operating expenses resulted in a $309.6 million net loss for DreamWorks Animation in fiscal 2014.
DreamWorks Animation has been expanding its operations overseas, specifically in China, where it intends to build a studio in Shanghai. As part of the company’s strategy of diversifying its revenue sources, over the last several years it has produced and developed a number of projects that are not feature films. In 2014 DreamWorks Animation announced plans to launch a 24/7 kids and family television channel across 19 countries in Asia.