The Animation Flood: Too Much Shrek
October 29, 2004 | Levent OZLER
Weeks or months from now, there is a good chance that DreamWorks Animation's decision to go public Thursday will look not only smart, but pure genius.
That's because movie studios big and small are racing to cash in on what has become a sizzling hot genre: animated films, particularly ones based on computer-generated images.
A dozen or more such films are in the works through 2006. But box office analysts say the deluge risks turning off the movie-going masses. Given the exorbitant costs of making and marketing an animated movie, more than a few studios could soon take a bath.
DreamWorks Animation's initial public offering, which raised $812 million and started trading Thursday at 39 percent above the offering price, showed Hollywood that there is space for another animation studio besides industry leader Pixar Animation Studios.
"I don't think it is a one-company industry," said Dennis McAlpine, an independent media stock analyst. "There's room for both DreamWorks and Pixar to thrive."
What about a third player? "That," said McAlpine, "will be hard."
more: money.cnn.com/2004/10/28/technology/animation/ (114)
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