• Ad Age, Wednesday, December 14, 2005 11:04 AM

One significant benefit to Viacom as a result of the deal to purchase DreamWorks' motion-picture unit is that it will lead to a full-scale distribution relationship between Viacom's Nickelodeon channel and DreamWorks' animation division. Sources say that DreamWorks Animation, which was not purchased by Viacom, will likely provide a steady stream of content to Nick. Hit movies such as "Shrek" and "Madagascar" could be transformed into TV series, DreamWorks cofounder Jeffrey Katzenberg told investors during a conference call yesterday. What's more, DreamWorks' animation division could create a number of new shows exclusively for Nickelodeon. While DreamWorks Animation could have arranged a distribution deal with anyone in the industry, Katzenberg said he thought a partnership arrangement with Paramount (on the feature side) and Nick (on the animation side) made great sense. DreamWorks properties "are in the hands of experts with a phenomenal track record," Katzenberg said yesterday.

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