DreamWorks Animation SKG Inc. (DWA), maker of the “Shrek” series, is in talks with Sony Corp. (6758)’s movie unit about distributing its films, Reuters reported, citing a person with knowledge of the discussions it didn’t identify.

Viacom Inc.’s Paramount Pictures has rejected a request from DreamWorks Animation Chief Executive Jeffrey Katzenberg to lower the fee DreamWorks pays on film revenues generated at movie theaters and from DVD sales to 7 percent from 8 percent, Reuters said. Their agreement expires next year, Reuters said.

A phone call to Sony's Tokyo headquarters outside business hours by Bloomberg News went unanswered.

To contact the reporter on this story: Jason Scott in Canberra at jscott14@bloomberg.net

To contact the editor responsible for this story: Paul Tighe at ptighe@bloomberg.net