DVD boosts DreamWorks Animation Q1

Strong sales of Bee Movie, Shrek the Third

By Jennifer Netherby -- Video Business, 4/30/2008

APRIL 30 | Strong DVD sales on Bee Movie and Shrek the Third boosted DreamWorks Animation earnings 69% in the first quarter, the company reported Tuesday.

DreamWorks said net income reached $26.1 million for the quarter ended March 31. Revenue was up 67% to $156.6 million.

Since the March 11 release of Bee Movie, the company has shipped 4.8 million units of the title. The film generated $48.9 million in revenue in the quarter through DVD sales and international box-office receipts. DreamWorks said it plans to release the film on Blu-ray Disc in the second half of the year.

Meanwhile, fourth-quarter DVD release Shrek the Third continued to sell well on video, with 19.8 million units shipped worldwide. The film contributed $48.3 million in revenue in the first quarter, mostly from international video sales.

Asked about the strong performance on those two DVD releases, CEO Jeffrey Katzenberg said the industry seems to be seeing stronger sales in the first four to eight weeks of a release.

“I don’t think we’ve seen anything that we’d be ready to sort of say is a new paradigm or trend in all of this,” Katzenberg said. “At the same time, I do think there is some indication that more of our, not just for us but in general in the industry, you’re seeing sort of a stronger performance in the initial period of release.”

The company continues to see strong performance on its library, which racked up $18.7 million in revenue in the first quarter. Madagascar, Flushed Away and Over the Hedge were strong catalog DVD sellers. DreamWorks said it has shipped 7.3 million units of Flushed Away.