The news may be confusing at first, but in spite of Dreamworks Animation’s Puss in Boots topping the box office, its meager box office earnings are resulting in a lot of head scratching amongst Dreamworks Animation’s investors. Shares in Dreamworks has fallen by 8 percent last Monday, after news of Puss in Boots disappointing $34 million opening week. It was good enough to make it No. 1 at the box office, but it falls below the amount needed in order for the film to make a profit, which made it perform well below the investors’ expectations.
Media analysts have confirmed that with the film’s estimated production budget of $130 million, Puss in Boots needed to earn as much as $40 to $45 million in order to make a profit. Cowen & Co. analyst Doug Creutz told in a Yahoo! Finance interview that Puss in Boots had the lowest opening of any Dreamworks animated film since 1998’s Antz. Most analysts admit that the film’s only chance of recovering from the poor opening is if it gets good word of mouth. The analysts also gave the film a bit of slack, stating that there are factors that could have contributed to the poor opening, such as the World Series occurring on the same day, as well as the bad weather in the east – both of which are beyond the studio’s means to control or prevent.
Let’s see what we can do for the box office numbers this week – have you guys seen the film yet? And if not, will you be doing so today?