LOS ANGELES (AP) -- DreamWorks Animation, the movie studio behind "Kung Fu Panda" and "Madagascar," says its films will be distributed by 20th Century Fox next year.
The five-year deal replaces an existing distribution agreement DreamWorks has with Viacom's Paramount Pictures.
The announcement Monday came after DreamWorks had contemplated distributing its films on its own.
The arrangement brings DreamWorks' animated titles together with those of Fox, whose Blue Sky Studios produced the computer-animated hits "Ice Age" and "Rio."
DreamWorks CEO Jeffrey Katzenberg said in a statement that its fee in theatrical and home video markets will be similar to its existing deal. But it will benefit from lower costs for films distributed digitally.
DreamWorks will also distribute its content to TV networks in the U.S. without paying a fee.