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Company: Dreamworks Animation SKG (DWA)
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2 votes

  "2 films a year, makes DWA a risky investment"

It is extremely difficult to predict the box office performance of a particular movie. Investing in DWA is thus inherently risky, especially since the studio releases only two feature films per year. The failure of just one movie could have a major negative impact on the firm's cash flow.

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0 votes

  2 films a year, makes DWA a risky investment

It is extremely difficult to predict the box office performance of a particular movie. Investing in DWA is thus inherently risky, especially since the studio releases only two feature films per year. The failure of just one movie could have a major negative impact on the firm's cash flow.

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0 votes

  Dilution of DWA's share of market

The number of film studios producing animated films has increased in recent years, which dilutes DWA's share of home entertainment and box office sales.

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  Digital piracy could continue to weaken DVD sales

Digital piracy could continue to weaken DVD sales, which is a major component of home entertainment sales accounting for 50% of DWA's revenue.

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