DreamWorks Animation SKG Inc posted quarterly results ahead of analysts' estimates, helped primarily by the international box office performance and domestic home video release of "Puss In Boots."
"Puss In Boots", which grossed about $554 million in worldwide box office, contributed $73.6 million to the total revenue for the first quarter. ...
DWA has an interesting business model: make a hit ... make another hit ... make another hit.
When that formula doesn't work out, things get dicey. Last year, the company had two unqualified hits (PnB, KFP2.) This year, it will go for two more. There are also t.v. shows and merchandising, but Jeffrey is doing a moist-palm high wire act. When you don't have the big hit, earnings get thin and you get in trouble.
So here's hoping for two more hits.
Add On: Re the DWA "upcoming hits" department, the Nikkster says this:
... DreamWorks told analysts that the Madagascar sequel and Rise Of The Guardians, due in November, will cost about $145M apiece to produce, higher than most previous DreamWorks Animation films. But there won’t be as much competition as there was last year. Although consumer spending on animation and family films “expanded, and expanded decently,” Katzenberg says it was “split among a number of films.” Animation is “the single most mainstream, most successful genre in movies today.” But “it looks easier than it is. People come in, they try it and then they go away.” This year “feels like more of a normalized market” — although still competitive as movies such as Hangover 2 become seen as family films.
Katzenberg says that the new Madagascar is the best of the three in the series, and will be “the first time audiences will get to experience this franchise in 3D.” ...
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5 comments:
Animation isn't a genre! Katz should know that...
"This year “feels like more of a normalized market”
Considering the amount of animated features from a wide scope of filmmakers and the different styles, I don't see this as a normal year at all.
It's a reasonable guess that Katzenberg was using business-speak while talking to financial analysts about quarterly results. In those terms, "animation" might equate to "substantially budgeted CG-animated features." Arrietty, Pirates, Paranorman, Frankenweenie, and the like are probably off that radar screen. In JK's mind, a normalized market might equate to one film apiece from Pixar and Blue Sky per year, two from DWA, and one or two from among WDAS, Illumination, and SPA. No independent smaller players need apply?
An interesting question is whether or not JK sees Wreck-it Ralph as a risk factor against Rise of the Guardians box-office success. He probably should, as what we've heard about Ralph so far suggests good things to come.
jester:*meow*
Film making is always a "high wire act." Sooner or later even the best will stumble.
Walt Disney was wise enough to move into other areas giving his Company the needed depth to survive. If DreamWorks is smart, they'll do the same.
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