DreamWorks Animation Skg Inc (NASDAQ:DWA) isn’t happy just being the creator of hit films like Shrek and Kung Fu Panda. The company has a much bigger dream in mind. It wants to be more like The Walt Disney Company (NYSE:DIS).
That’s clear enough from its corporate communications. In yesterday’s earnings release, CEO Jeffrey Katzenberg said that Dreamworks Animation Skg Inc (NASDAQ:DWA) continues to “diversify and evolve into a branded family entertainment company.” That sounds more than a bit like The Walt Disney Company (NYSE:DIS), which defines itself as “a diversified worldwide entertainment company” that pulls revenue from its studio business while also profiting from consumer products, television, and theme parks.
Not just movies
Investors could see evidence of the diversity that Dreamworks Animation Skg Inc (NASDAQ:DWA) is after in its latest quarterly results. Yes, it still got the vast majority of revenue from theatrical releases, with The Croods standing out as a hit and bringing in $72 million of DreamWorks’ $213 million in sales. But the company also booked significant revenue from a licensing deal with Netflix, Inc. (NASDAQ:NFLX), and from its Classic Media television property that it purchased last year.
Dreamworks Animation Skg Inc (NASDAQ:DWA) also announced a major push into the consumer products business. It made a deal with Hasbro, Inc. (NASDAQ:HAS) to release toys and games around its theatrical releases for 2015 and 2016. DreamWorks expanded its properties into theme parks, too, licensing new entertainment venues at SeaWorld in San Diego and at Busch Gardens in Tampa, Fla., this past quarter. The company even got deeper into the cruise business by expanding its deal with Royal Caribbean Cruises Ltd. (NYSE:RCL) to include two of Royal’s newest ships.