Sir Tiki Posted January 20, 2015 Share Posted January 20, 2015 The LA Times is saying it could be up to 400 jobs cut now: http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-dreamworks-layoffs-box-office-flops-20150120-story.html#page=1 1 Quote Link to comment Share on other sites More sharing options...
kayumanggi Posted January 20, 2015 Share Posted January 20, 2015 Wow. 2 Quote Link to comment Share on other sites More sharing options...
FrozenUnicorn Posted January 20, 2015 Share Posted January 20, 2015 The LA Times is saying it could be up to 400 jobs cut now: http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-dreamworks-layoffs-box-office-flops-20150120-story.html#page=1 Ouch. Katzenburg really needs to step down as head of the company, and let someone take the wheel who cares about quality of the films rather than number. 2 Quote Link to comment Share on other sites More sharing options...
phantom Posted January 20, 2015 Share Posted January 20, 2015 Dreamworks really should lower their films' budget. Even if they'll just release a B rated movie or the animation is not on par with Pixar and Disney, people will still flock on their releases, especially they already gained some brand recognition. I read Ed Catmull once said that even if the animation is incomplete, as long as the story resonates, audience won't even notice that there's something wrong with the animation and they'll still love the movie. 1 Quote Link to comment Share on other sites More sharing options...
Rudolf Posted January 20, 2015 Share Posted January 20, 2015 I wouldn't cancel Captain Underpants, seems like that will be a cheaply made movie. Besides, the book series has sold over 50 million books in America. but the international market is where animated movies make most of their profit now 1 Quote Link to comment Share on other sites More sharing options...
Jonwo Posted January 21, 2015 Share Posted January 21, 2015 (edited) Ouch. Katzenburg really needs to step down as head of the company, and let someone take the wheel who cares about quality of the films rather than number. Who would replace him? I imagine he'll stick with DWA until its sold or he's forced to stepped down. I think lowering the budgets would only be a temporary fix especially as their budgets will still be higher than WB, Sony, Blue Sky, Illumination etc If they want to compete with these studios, they will have to outsource to their studios in India or China and/or close one of their California studios Edited January 21, 2015 by Jonwo Quote Link to comment Share on other sites More sharing options...
kowhite Posted January 21, 2015 Share Posted January 21, 2015 Who would replace him? I imagine he'll stick with DWA until its sold or he's forced to stepped down. I think lowering the budgets would only be a temporary fix especially as their budgets will still be higher than WB, Sony, Blue Sky, Illumination etc If they want to compete with these studios, they will have to outsource to their studios in India or China and/or close one of their California studios I'm with you, there is no easy fix. They aimed high, and their films aren't delivering. But replacing Katz...isn't some easy fix. Finding someone to deliver on the level needed isn't simple...in fact, it may be impossible. And if it is impossible, dare I say it's luck. They can't just lower budgets...that's complicated...lets get real, there aren't many delivering the grosses they are. Sure, point to Lego or Blue Sky but they aren't delivering movies at the same pace. Ultimately, it may be the point that this is unsustainable. Bad luck, bad choices...it's unfortunate but I can't pretend there's some simple replace and you're good to go solution. Seriously, not even Disney can deliver at the pace Dreamworks is trying. 2 Quote Link to comment Share on other sites More sharing options...
Jonwo Posted January 21, 2015 Share Posted January 21, 2015 (edited) I'm with you, there is no easy fix. They aimed high, and their films aren't delivering. But replacing Katz...isn't some easy fix. Finding someone to deliver on the level needed isn't simple...in fact, it may be impossible. And if it is impossible, dare I say it's luck. They can't just lower budgets...that's complicated...lets get real, there aren't many delivering the grosses they are. Sure, point to Lego or Blue Sky but they aren't delivering movies at the same pace. Ultimately, it may be the point that this is unsustainable. Bad luck, bad choices...it's unfortunate but I can't pretend there's some simple replace and you're good to go solution. Seriously, not even Disney can deliver at the pace Dreamworks is trying. WDAS a decade ago did start doing 2 films a year in 1999/2000 with Dinosaur and The Emperor's New Groove in the same year and Lilo and Stitch and Treasure Planet in 2002 and that wasn't including films from their DTV studio like The Tigger Movie. I think releasing 2-3 films a year has meant audiences have tired of the DWA brand as they've not hit it out of the park, when it was only them, Pixar and to an extent Blue Sky, they could get away with mediocre but with so many studios competing in an over saturated market, they've frankly not stepped up their game and they are paying the price. Edited January 21, 2015 by Jonwo Quote Link to comment Share on other sites More sharing options...
AniNate Posted January 21, 2015 Share Posted January 21, 2015 Sure, point to Lego or Blue Sky but they aren't delivering movies at the same pace. They also get tax breaks, and I'd really rather studios not be forced to relocate just to lower their budgets. Quote Link to comment Share on other sites More sharing options...
Walt Disney Posted January 21, 2015 Share Posted January 21, 2015 but with so many studios competing in an over saturated market, they've frankly not stepped up their game and they are paying the price. The market is over saturated. There have to be losers in a market like that. DWA is probably the best after Disney's 2 headed monster of WDAS and Pixar. However, they may end up being a victim to the over saturation of the market. They're not the first victim and they won't be last. 1 Quote Link to comment Share on other sites More sharing options...
MovieMan89 Posted January 21, 2015 Share Posted January 21, 2015 (edited) Pixar and Disney need to learn from DWA's stumbles and not start up this two movies a year release strategy. Maybe they can get away with doing that once every 4 years or so, but if they start doing it every year they will end up in the same place with the same problem DWA has. I'm sorry, but I just don't think it's a sustainable strategy for any animation studio. Animation requires too much time and effort, and eventually that release pattern exhausts the potential. Edited January 21, 2015 by MovieMan89 1 Quote Link to comment Share on other sites More sharing options...
AniNate Posted January 21, 2015 Share Posted January 21, 2015 Pixar and Disney need to learn from DWA's stumbles and not start up this two movies a year release strategy. Maybe they can get away with doing that once every 4 years or so, but if they start doing it every year they will end up in the same place with the same problem DWA has. I'm sorry, but I just don't think it's a sustainable strategy for any animation studio. Animation requires too much time and effort, and eventually that release pattern exhausts the potential. It's not like Dreamworks ever really had the kind of creative power Pixar and Disney had. They've always put out mostly ordinary films with the occasional breakout hit even before they started ramping up their production slate (and arguably they were even worse since they haven't put out anything as bad as Shark Tale recently). In this more crowded market where CGI is no longer a novelty but an expectation, their MO is catching up to them and will spell their doom regardless of how many films they put out if they don't completely revamp their production model. 2 Quote Link to comment Share on other sites More sharing options...
The Futurist Posted January 21, 2015 Share Posted January 21, 2015 Also, poor Fox, they just bought DWAS films rights at the worst time, they must be pissed... 1 Quote Link to comment Share on other sites More sharing options...
Walt Disney Posted January 21, 2015 Share Posted January 21, 2015 Also, poor Fox, they just bought DWAS films rights at the worst time, they must be pissed... Fox is just the distributor. DWA finances their own films. Therefore, it really doesn't hurt Fox at all. That's why movie studios like to just distribute films financed by a smaller studio because there is no risk for them. 1 Quote Link to comment Share on other sites More sharing options...
The Futurist Posted January 21, 2015 Share Posted January 21, 2015 Fox is just the distributor. DWA finances their own films. Therefore, it really doesn't hurt Fox at all. That's why movie studios like to just distribute films financed by a smaller studio because there is no risk for them. I don't understand your reasoning. I think Fox has a share in Dreamworks Animation grosses so they must be disappointed by the results so far. That gross percentage wasn't free you know so the investment until now is not that good. 1 Quote Link to comment Share on other sites More sharing options...
Walt Disney Posted January 21, 2015 Share Posted January 21, 2015 I don't understand your reasoning. I think Fox has a share in Dreamworks Animation grosses so they must be disappointed by the results so far. That gross percentage wasn't free you know so the investment until now is not that good. They just get their distribution fee. The marketing money is reimbursed off the top and they get a distribution fee, which is a percentage of the profits. Fox didn't risk anything, so they're not losing out on the deal. It just isn't a huge moneymaker. To contrast it to something, DreamWorks live action finances their own movies as well. But, Disney loaned DreamWorks money to make films and they aren't close to getting the money back that they loaned. That's a situation where even though DreamWorks finances their own films, it does hurt the distributor. The DWA deal with Fox doesn't really hurt Fox. 1 Quote Link to comment Share on other sites More sharing options...
BK007 Posted January 21, 2015 Share Posted January 21, 2015 Perhaps if they hadn't so willingly colluded with Ed Catmull to suppress animator wages, they might've had more creative people and ideas around to play with. As it stands, Disney can move on unharmed and they are headed down. 1 Quote Link to comment Share on other sites More sharing options...
Sir Tiki Posted January 22, 2015 Share Posted January 22, 2015 DreamWorks Animation Restructuring To Cut 500 Jobs With $290M Charge The beleaguered independent studio says it will reduce its output to two films a year from three as it seeks to “maximize its creative talent and resources, reduce costs, and drive profitability.” One of the annual films will be an original and the other a sequel. But with the cut, DreamWorks Animation will eliminate about 500 jobs “across all locations and all division of the studio” as it consolidates its northern California studio on to the Glendale campus. Vice Chairman Lew Coleman will retire. In addition, DWA says it will take a pre-tax charge of $290 million, most of it to be recorded in Q4 but with $110 million in cash payments, mostly this year. It expects to end up saving $30 million this year, growing to $60 million in 2017. The news lifted DWA shares about 6.2% in post-market trading. The company also told analysts in a conference call that it will take a $80 million write-down for the underperformance of Penguins of Madagascar as well as Peabody and Sherman. “The number one priority for DreamWorks Animation’s core film business is to deliver consistent creative and financial success,” CEO Jeffrey Katzenberg says. “I am confident that this strategic plan will deliver great films, better box office results, and growing profitability across our complementary businesses.” The company says its upcoming releases, in addition to Home (March 27), will include Kung Fu Panda 3 (March 18, 2016), Trolls (Nov. 4, 2016), Boss Baby (Jan. 13, 2017), The Croods 2 (Dec. 22, 2017), Larrikins (Feb. 16, 2018) and How To Train Your Dragon 3 (June 29, 2018). Another film, Captain Underpants, will be “produced outside of the studio’s pipeline at a significantly lower cost” for release in 2017. It does not mention B.O.O.: Bureau of Otherworldly Operations, which had been scheduled for a June release before it was removed from the schedule in November. Execs told analysts that Home will be the only release this year. Word of the layoffs began to spread this week following the departure earlier this month of Chief Creative Officer Bill Damaschke. Veteran producers Bonnie Arnold and Mireille Soria were named Co-Presidents of Feature Animation. http://deadline.com/2015/01/dreamworks-animation-restructuring-to-cut-500-jobs-with-290m-charge-1201355918/ 1 Quote Link to comment Share on other sites More sharing options...
Fullbuster Posted January 22, 2015 Share Posted January 22, 2015 UPDATE: DreamWorks Animation Expects To Have A New Distribution Deal This Fall DWA Releases Threads Archive ============ DOM: B.O.O: Bureau of Otherwordly Operations (2015/09/25) The Croods (2013/3/22) Happy Smekday (2014/11/26) How To Train Your Dragon 2 (2014/6/20) How to Train Your Dragon 3 (2016/6/18) Kung Fu Panda 3 (2016/3/18) Madagascar 3: Europe's Most Wanted (2012/6/08) Me and My Shadow (2014/3/14) Mr. Peabody and Sherman (2013/11/01) Mumbai Musical(2015/12/19) Penguins of Madagascar(2015/3/27) Trolls (2015/6/05) Turbo (2013/7/19) Rise of the Guardians (2012/11/21) Clubs: Madagascar 3 Under 100m Troupe The Madagascar 3 OVER Brave club Rise of the Guaidians 160M DOM / 400M WW Club OS: The Croods OS thread Madagascar 3 OS Thread Rise of the Guardians OS thread 1 Quote Link to comment Share on other sites More sharing options...
Jonwo Posted January 22, 2015 Share Posted January 22, 2015 Looks like Mumbai Musical, Madagascar 4 and Puss in Boots have been canned for now. Captain Underpants sounds like it'll be outsourced to one of their studios in China or India to save money, I would not be surprised if it ends up replacing Boss Baby which I'm surprised is still going ahead. Tough times for Katzenberg and DWA, I do think it's time he stepped down and got someone in who can turn the company around. Quote Link to comment Share on other sites More sharing options...
