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DreamWorks Makes Deal with McDonalds

By Alex Russel
Learning & Life Columnist

While rumors swirl around an imminent sale of the DreamWorks film Unit to Universal/NBC, DreamWorks Animation has announced its break up with promotional partner Burger King in order to join forces with McDonald's Corp. for a two-year pact that begins in 2007 with Shrek 3.

According to the Hollywood Reporter, the new partnership is exclusive to DreamWorks but not to McDonald's, and will not block the fast-food giant from continuing its relationship with DreamWorks archrival Walt Disney after the companies' 10-year alliance expires in 2007, executives from McDonald's and DreamWorks said.

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DreamWorks Animation CEO Jeffrey Katzenberg said the partnership will cover Shrek 3 and Jerry Seinfeld's Bee Movie in 2007, and Kung Fu Panda and a yet-to-be-announced holiday title in 2008. The deal includes a renewal option after the initial two-year term.

McDonald's had been looking to move away from Disney for awhile.

"Ten years is a very long time," said Larry Light, global chief marketing officer at McDonald's, the world's largest fast food chain. "The world changes more than once in 10 years. I don't anticipate that we'll be making 10-year deals in the future with anybody."

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The relationship between McDonald's and Disney has been marked by several notable successes, including 101 Dalmatians and Finding Nemo. But there were also disappointments tied to Disney flops such as Atlantis: The Lost Empire and Treasure Planet.

It is hard for fast food companies to prepare for both successes and the failures. Merchandise and marketing plans are developed at least a year in advance, long before anyone can know what a film will do at the box office.

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McDonald's said it was talking to Disney and other firms about other possible marketing relationships but did not say if it expects to promote Disney films after next year.

DreamWorks chief executive Jeffrey Katzenberg said he was not worried about McDonald's possibly working with one of his competitors.

"We encourage them to," Katzenberg said. "The stronger the brand is, the stronger their relationship is with their consumer. It's good for both of us."

DreamWorks Woes

DreamWorks Co-Founder Katzenberg is a former executive at Disney and won a contentious lawsuit against his old employer after he jumped ship to start DreamWorks with fellow moguls Steven Spielberg and David Geffen.

Geffen has recently begun negotiating a sale of DreamWorks' film unit to Universal/NBC, the newly merged entertainment giant owned by General Electric. DreamWorks film studio, founded a decade ago, has largely been a disappointment despite a few successes like Saving Private Ryan and American Beauty.

Sources:

• Hollywood Reporter

About the Author
Alex Russel is a freelance writer living in Brooklyn, New York. Since graduating from Syracuse University he has worked at many different media companies in fields as diverse as film, TV, advertising, and journalism. He holds a dual bachelor's degree in English and History.

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