DreamWorks Animation has signed a five-year distribution deal with 20th Century Fox for its theatrical films beginning next year with The Croods. Fox will be replacing DreamWorks’ old distribution partner Paramount Pictures. The new deal represents the culmination of a souring relationship between DreamWorks Animation and Paramount that began in 2011 when DreamWorks CEO Jeffrey Katzenberg sought a better deal and Paramount launched a competing feature film animation unit in response. DreamWorks will pay Fox the same 8% of revenue from feature film and DVD sales, but managed to negotiate a lower fee for digital distribution and retains the right to distribute its own movies for television broadcast in the United States and China. Potentially complicating the new relationship is Fox’s own animation unit Blue Sky Studios, which will now be competing with DreamWorks for release dates and marketing support.