Kung Fu Panda 2, according to the business press, has been a factor in depressing DreamWorks Animation's stock price, and yet it's so far pulled down $531.2 million in worldwide grosses ...
If this were 2010, this would make it the tenth highest grossing film.
Last year ... animated features accounted for five of the year's top 10 box-office attractions.
At No. 1: Pixar's Oscar-winning "Toy Story 3," which racked up a worldwide gross of more than $1 billion. Also in the Top 10 for 2010: DreamWorks Animation's "Shrek Forever After," in fifth place with more than $752.6 million in worldwide ticket sales; Disney's "Tangled," at No. 8 with a take of more than $590.7 million; Universal's "Despicable Me," at No. 9 with more than $543.1 million; and, at No. 10, DreamWorks' "How to Train Your Dragon," with more than $494.8 million.
Jeffrey K. and company can't catch a break.
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9 comments:
Live by the IPO, die slowly by the quarter. Completely ridiculous expectations from the street - look at Dreamworks track record versus every other studio, live-action or otherwise, and tell me that they aren't a reliable investment. It's like expecting a studio to put out a Lion King sized hit every 18 months.
How is SKG animation even listed as a public company? They are not pumping out widgets from an assembly line. Sure they have a 'production pipeline' and dress up their financials to look like they are a traditional industry, but come on. They make animated films one at a time, each with it's own unique set of challenges and internal structures. They shift costs around from hits to failures like mad and somehow have to make it appear like they are something the street can bet on with consistency, like betting on GE or Apple. It's complete and utter bullshit. Animated movies are private enterprises. What complete and utter bullshit.
Speaking of flops....check out the live action side of things...
http://www.themalaysianinsider.com/showbiz/article/the-10-biggest-movie-flops-of-2011-so-far/
rufus
^
rufus -
One of the movies on that list of flops you posted was the animated "Hoodwinked, Too".
"Hoodwinked, Too came and went quickly, earning only US $10 million in North America and US $3.6 million overseas. ($13.6 cumulative) Its production budget was a reported US $30 million."
My guess is going public wasn't really a choice DW execs wanted to make.
They had to raise capital to pay the original investors when Dreamworks live action and animation broke off.
But what was KFP2's budget? And how much will it have to earn to recoup that budget and make a profit?
I'm never sure if their ambitious film schedule is a result of being a publicly traded company or their status as a publicly traded company is a result of their ambitious film schedule. I think that is where the executive circle at Dreamworks fails. Although they thankfully employ a great number of people, the company really could make half as many movies and still retain their competitive edge as a unique and excellent film studio. It's the extra baggage they unnecessarily carry around that keeps the entire Wall Street facade on thin ice and begging to go private again. They aren't Disney, and that's a good thing.
At the end of the day, the IPO put cash in DWA's coffers, and you betcha they're happy to be sitting on cash in this economic environment.
And sure, the stock's in the doldrums, but the only people that care about that are stockholders and management. Doesn't make employees any richer or poorer when the stock languishes -- there ain't no fancy stock options for rank-and-filers like at your dot coms!
Actually bonuses at DW are tied to the operating income which is indirectly tired to the stock financials.
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