‘Bah Humbug’ to Dreamworks Xmas Disc Sales

Jan 12th, 2011 by dvdxplayer 1,315 views |Comments Off

What studio would scoff at millions of discs marketed through the xmas holidays? Apparently one owned and operated with a specific Wall street analyst.

Combined product sales exceeding 10 million discs for Shrek permanently pursuing and the right way to educate Your Dragon through the holidays coupled with gentle box workplace income for Megamind listed a Scrooge-like response from Ralph Schackart, analyst with William Blair & Co. in Chicago.

In a Jan. 11 note, Schackart downgraded DreamWorks Animation’s fourth quarter and fiscal 2011 income projections pursuing CEO Jeffrey Katzenberg disclosed the tally and discussed Megamind’s theatrical run on CNBC through last week’s customer Electronics Show.

Katzenberg stated the studio’s discs are analogous to toys, in which they are largely ordered moms and dads and achieved for their youngsters repeatedly.

“We undoubtedly are a difficult products business,” Katzenberg said. “[Disc] product sales are comfortably from what they experienced been three many years ago, [but] what is not comfortably from three many years ago?”

Regardless, Schackart stated the equipment product sales do not bode nicely for all round projections of 28 million discs marketed in between the two titles.

“Given the fact that major few of weeks of selling for discs produce a disproportionate amount of equipment sales, we think our mixed equipment estimation is large and we are lowering it to 24 million units,” Schackart authored in a really note.

He also cited a last domestic box workplace tally of $146 million for Megamind, nicely below his projection of $167 million. like a result, Schackart lowered his fourth quarter income projection from $331.2 million to $303.7; and full-year 2011 income projection from $893.6 million to $856.1 million.

Separately, Michael Pachter, analyst with Wedbush Securities in Los Angeles, stated Megamind suffered from bad reviews, no prequel to entice viewers, as well as a combine of human being and alien characters. He lowered the film’s domestic box workplace tally to $145 million from $176 million.

Pachter remained good concerning Shrek/Dragon disc sales, saying he anticipated the studio to beat street expectations.

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