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COPYRIGHT 2004 Newsweek, Inc. All rights reserved. Any reuse, distribution or alteration without express written permission of Newsweek is prohibited. For permission: www.newsweek.com
Byline: Sean Smith
Captain Hook is playing the blues. At a dive bar in a forest, the Ugly Stepsister is hawking booze, the Headless Horseman is hammered and the king is hiring a hit man to kill Shrek. Can you blame him? The ogre has won the heart of the princess and thrown the castle into chaos--he's ruined everything! Just ask Disney.
Three years ago "Shrek" grossed $480 million worldwide and scored DreamWorks the first-ever animated-movie Oscar by lampooning the fairy-tale formula that had built the Magic Kingdom. "Disney has really been the leader, in every respect, for 75 years," says Jeffrey Katzenberg, who shepherded "The Lion King" at Disney, then founded DreamWorks with Steven Spielberg and David Geffen 10 years ago. "We needed to find our own path, a sensibility that's a little subversive. 'Shrek' defined...
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