Strategic Alliances, Collaboration and Joint Ventures Case Study

Big Cinema Teams Up with DreamWorks: Hollywood Aspirations?

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Abstract:
Reliance ADAG and DreamWorks of Steven Spielberg, recently entered into a 50:50 partnership deal to establish a new studio in Los Angeles. For Reliance, the deal was very significant, as it would help them to achieve their global aspirations to become a $10 billion entertainment giant. Steven Spielberg's DreamWorks had earlier severed its relations with Viacom's Paramount Pictures due to management and ownership problems. Furthermore, the US financial markets were reeling under the severe credit crunch, and raising funds for future projects became an uphill task for the Hollywood filmmakers. The deal between Reliance and DreamWorks aimed at supporting DreamWorks future projects by giving them an access to a stable, hassle-free source of finance, which was not possible from other sources like private equity, financial institutions etc, and also a platform to enter India to showcase their works. It remains to be seen whether the deal will fulfil the aspirations of both the players.

Pedagogical Objectives:

This case study aims at achieving the following pedagogical objectives:
• To understand and analyse the US movie industry.
• To the Reliance and DreamWorks joint venture, and the prospects and problems associated with the deal.

Keywords :  Box office, US entertainment industry, Indian entertainment industry, Distribution rights, Supply chain, Synergy, Hollywood, Occupancy rates, Movie production, Animation industry, Media companies, Digital, Cinema chain, Financial crisis, Steven Spielberg

Contents : 
Dynamics of US Movie Industry: DreamWorks Position
Big Cinema Going Global
Financial performance of Adlabs
The Deal: Prospects and Problems
Time line of US Movie industry