Shrek 3D film fails to pull in the cash - Don't look far for the reason - this is the result of Clash 3D fiasco

http://today3d.blogspot.com/2010/05/shrek-3d-film-fails-to-pull-in-cash.html

DreamWorks Animation shares tumbled more than 10 per cent yesterday after the company's latest film Shrek Forever After had a weaker than expected opening weekend at the box office.

 

The film generated $71.2m in its first weekend in the US - substantially less than the $122m generated by Shrek the Third on its opening weekend three years ago.

 

Shrek Forever After was produced and screened in 3D, which has provided a box office boost for Hollywood in the past couple of years, powering films such as Avatar and Alice in Wonderland to record takings around the world.

 

Consumers have - until now - been willing to pay a premium for 3D tickets. But the weaker performance of the fourth Shrek movie has raised concerns that audiences are growing wary of the higher prices.

"We wonder whether the US consumer is simply telling movie exhibitors that 3D pricing has simply gone too far, too fast for the average movie," Richard Greenfield, an analyst with BTIG Research, wrote in a research note.

 

"While consumers may have no issue paying a 3D premium for a movie such asAvatar or Alice in Wonderland , consumers may downgrade to 2D for weaker content such as Shrek ."

Many in Hollywood will be hoping that the 3D bubble has not burst, including Jeffrey Katzenberg, the chief executive of DreamWorks Animation. He has staked his company's future on 3D with a pledge to produce all of the company's new releases in the format.

 

He has also become an unofficial spokesman for 3D, using industry conferences to talk about its potential to revolutionise Hollywood in the same way that the advent of sound and colour did decades ago.

The box office performance of a typical Hollywood film tends to be dictated by its opening weekend, which comes at the end of a big publicity and advertising blitz.

 

Shrek's performance was shy of the $88.5m forecast by Lazard Capital Markets. But Barton Crocket, an analyst with Lazard, wrote in a research note that "there were mitigating positives, including a very favourable audience reaction".

 

Lazard has not changed its $295m total estimate for the performance of the movie in the US, with Mr Crockett saying it has "solid international potential".

Shares in DreamWorks Animation closed down $3.82 at $31.05.