Dreamworks Animation has a new distributor 20th Century Fox. The deal, which in effect unites Jeffrey Katzenberg's studio with Fox's Blue Skies division -- its latest release, Ice Age Continental Drift , has thus far earned $797.4 million worldwide -- makes Fox an animation powerhouse. In a statement, Katzenberg said that his studio will benefit in more ways than one by switching to Fox. As films increasingly are distributed on digital media instead of on expensive film, the physical costs of distribution have been reduced significantly. Moreover, he said, his company will now handle TV distribution in-house. During a conference call, Katzenberg indicated that DWA's current distributor, Paramount, will retain distribution rights on some films that have been in development, but he voiced no regrets. "We enjoyed a fantastic working relationship with Paramount," he said, "They did an excellent job." Shares of DWA and News Corp, which owns 20th Century Fox, were each up about 2 percent at midday trading today (Tuesday).