DreamWorks Co-Founder Teams with Kimbal Musk to Scale Drone Entertainment

Jeffrey Katzenberg, co-founder of DreamWorks and a creative force behind seminal animated films like Shrek and The Lion King, has joined forces with Kimbal Musk to reshape the landscape of entertainment through drone technology. Katzenberg is now serving as a strategic advisor to Nova Sky Stories, the drone entertainment firm founded by Musk during the pandemic. Alongside his advisory role, Katzenberg’s tech investment company, WndrCo, has participated in a $50 million funding round aimed at scaling the company’s ambitions [1].

Nova Sky Stories, which acquired Intel’s drone business in 2022, has been working to refine the hardware and software behind airborne performances. The company has already demonstrated the potential of drone-based storytelling at events such as the 2022 Burning Man festival, where Katzenberg witnessed a thousand drones morph into a dynamic, three-dimensional face. The experience reinforced his belief that drones represent a “completely new canvas for storytelling,” one that allows for the creation of original characters and narratives in immersive, interactive formats [1].

Kimbal Musk, who also serves on the boards of SpaceX and Tesla, has drawn a parallel between the early stages of drone entertainment and the formative years of Disney’s animated films. Just as Steamboat Willie in 1928 set the stage for the future of animation through synchronized sound and movement, Musk envisions a similar leap in innovation for drones. The company is experimenting with voice-activated characters and interactive elements, leveraging the physicality of drones to create experiences that extend beyond the confines of a two-dimensional screen [1].

The partnership between Katzenberg and Musk aims to introduce a new category of large-scale entertainment. They plan to stage drone shows at global stadiums, targeting audiences of 50,000 to 80,000 people. Katzenberg notes that stadiums are often underutilized outside of sports and concerts, suggesting that drone-based performances could become a third pillar of major events within five years. The first co-developed show, created in collaboration with Katzenberg, is scheduled to debut in 2026 [1].

Nova Sky Stories is also expanding its fleet of drones, with Musk estimating that up to 25,000 additional units could be manufactured by the following year. While the company has not disclosed the cost per drone, the $50 million funding round will support this expansion. Katzenberg emphasized that the business is already cash-positive and that the capital will help accelerate the development and deployment of the drone fleet [1].

Together, Katzenberg and Musk are building a library of intellectual property designed for “branded family entertainment,” signaling a shift from viewing drones as a novelty to recognizing them as a legitimate and scalable medium for storytelling. Their vision reflects a broader trend in using technology to reimagine how audiences engage with entertainment, blending creativity with innovation to redefine what is possible in the skies [1].

Sources:

[1] Fortune — [https://fortune.com/2025/08/22/jeffrey-katzenberg-kimbal-musk-drone-nova-sky/](https://fortune.com/2025/08/22/jeffrey-katzenberg-kimbal-musk-drone-nova-sky/)