The makers of that famous “Little Nemo” have been experiencing some problem as of late, as DVD sales have floundered. Their sales have gone down to 72%, a big drop as DreamWorks saw its rise as other popular animation studios closed.
Analyst counted on 32 cents profit per share last year and must have been surprised when total sales fell to $24.3 million. The company, based in Glendale California is looking to branch out in China, a strategic move, representing a change in strategy following the bad DVD sales this Christmas. Kung Fu Panda II, initially expected to do well, did poorly in the home video market.
Executives at the company point to modest digital sales compared to physical products, change many DVD distribution networks have felt in recent years. Later this year, DreamWorks plans to announce new distribution deals, as the current deal with Viacom expires at the end of the year.
DreamWorks however is known for innovation and contend they have new and exciting opportunities in the near future. DreamWorks is looking up, but this could spell bad news for the movies themselves which may lack budgeting if sales don’t get better.