Yesterday's (Dec. 11) announcement that Paramount Pictures Corp. was acquiring DreamWorks SKG in a $1.6 billion deal will have major implications in the home video industry.

Yesterday’s (Dec. 11) announcement that Paramount Pictures Corp. was acquiring DreamWorks SKG in a $1.6 billion deal will have major implications in the home video industry.

DreamWorks' 60-title DVD library, which includes "Gladiator" and "American Beauty," is currently distributed by NBC Universal, who had been negotiating a DreamWorks acquisition itself for several months.

NBC Universal stands to lose tens of millions of dollars in home video distribution over the next five years, according to industry reports.