LOS ANGELES, June 18 "Shrek" creator DreamWorks
Animation expects revenue from its expanding television
business to reach $100 million this year and to rise to a
"steady state" of $200 million annually starting in 2015, Chief
Executive Jeffrey Katzenberg said on Tuesday.
The television business, which soon will ramp up with
original programming, will generate gross profit margins around
30 percent, Katzenberg told Wall Street analysts. That margin is
close to what DreamWorks sees in its film business, he said, a
day after the company announced a multi-year TV production deal
with Netflix Inc.
DreamWorks, creator of hit franchise films including
"Madagascar" and "Kung Fu Panda," on Tuesday also said it
reached a five-year agreement to bring shows based on its
characters to German television through a contract with
children's TV network Super RTL.
Over the next five years, DreamWorks will produce nearly
1,200 hours of television featuring characters from its own
movies as well as from its purchase of Classic Media, the owner
of Lassie, Casper the Friendly Ghost and other characters.
The revenue estimates do not include the benefits from
sales of consumer products related to the characters, Katzenberg
Shares of DreamWorks Animation rose to $24.80 in after-hours
trading, up 2 percent from their earlier close of $24.31 on