Paramount has finally caught on that animation is popular with viewing audiences. The distribution company is opening an animation company to produce movies that could potentially rival Disney and DreamWorks. Currently, Paramount distributes DreamWorks’s animated features, but both companies are seeking to make bigger profits. Disney distributes live action films for DreamWork and, considering their corner on the market, will not touch another company’s animated films. In light of this change, Paramount is looking at Nickelodeon, another Viacom property, for source material.