Jeffrey Katzenberg Is Betting on Drones for Entertainment

Three years ago, Jeffrey Katzenberg attended Burning Man, the cultural festival held annually in the Black Rock Desert of Nevada. “I’m an undercover secret ‘burner,’” he told TheWrap. Surrounding him were a myriad of art installations, but it wasn’t until the entertainment mogul looked up that he saw something that held his attention.

In the night sky was an array of drones coordinated and lit up in a way that it formed a giant eye. “It completely blew me away,” Katzenberg said.

The dazzling display led to a conversation with Kimbal Musk, the brother of Elon Musk and founder of drone company Nova Sky Stories, and the beginning of a collaboration that resulted in Friday’s announcement that Katzenberg would join the company as a strategic advisor. Katzenberg’s investment firm, WndrCo, has also invested in the company.

“There’s no reason we can’t create the next family-branded media entertainment company,” Katzenberg said. “You sort of have to dream a little bit with us.”

The investment comes as drone shows are having a moment. Social feeds are filled with videos of sophisticated images “drawn” by thousands of drones flying in unison, creating characters, logos and other moving images set to music. They’re increasingly becoming fixtures at concerts and outdoor sporting events, or seen as safer alternatives to fireworks.

But like fireworks, the novelty of drone shows can get old pretty quickly.

That’s where Nova Sky wants to set itself apart — through long-form storytelling.

“We’re actually telling stories; we’re engaging audiences just like a movie,” Kimbal Musk told TheWrap. “It’s a new canvas for family entertainment.”

Enter Katzenberg, co-founder of Dreamworks. WndrCo’s investment will help Nova Sky grow its creative studio with additional animators and storytellers. The company said it will debut its first co-developed Sky Story with Katzenberg in 2026.

Investing in new formats

Katzenberg compared his experience with Nova Sky’s drone to the moment he first saw the animated short, “Luxo Jr.” The lamp, now the iconic mascot for Pixar, was the last “light bulb” moment for the executive.

“This is not just a new technology; it’s actually a new art form,” he said.

He sees the same potential with drones. “The ability to be engaging and interactive and surround the audience and engage them is unique,” he said. “You can’t do that with any other form of technology that I’m aware of.”

Katzenberg has a history of embracing new mediums. After turning around Walt Disney’s animation unit, he spearheaded the deal to get Pixar to produce “Toy Story” and took that computer-generated animation expertise over to DreamWorks, which produced hits like “Kung Fu Panda” and “Shrek.”

His bets haven’t all paid off. Katzenberg was also a champion of the 3D format, and the short-form video platform Quibi, a spectacular miss as YouTube began to supplant traditional TV.

Nova Sky’s growth

Nova Sky already offers a 90-minute show themed around Antonio Vivaldi’s “The Four Seasons,” and Musk talked about the momentum that the company has enjoyed. It has dedicated fleets in the U.S., E.U. and Australia, with plans to launch another fleet in the Middle East.

The company sold 6,000 tickets for these dedicated drone shows in 2024. This year, it’s on track to sell half a million tickets, he said.

Musk noted that while other drone companies use “off-the-shelf” drones and repurpose them for light shows, Nova Sky uses purpose-built ones that use proprietary and patented technology, which he acquired from Intel.

Looking ahead, Musk teased more interactive elements, such as a single drone that can land on an audience member’s hand, before heading up and rejoining the fleet to create a massive dragon that can breathe fire (a capability that it hasn’t yet put to use).

But all those features won’t matter unless there’s a strong narrative to engage the audience, something Katzenberg has vowed to help create.

“We’re very excited to bring his creative vision to Nova,” Musk said. “We’re going to make magic.”