So what did you do this weekend, slacker?
DreamWorks Animation (NYSE: DWA) did plenty. Since most of us punched out on Friday, the computer animation studio:
- Hit the local multiplex with Madagascar: Escape 2 Africa.
- Officially opened Shrek: The Musical on Broadway.
- Released Kung Fu Panda on DVD.
All three of those events will have material implications down the road.
The Madagascar sequel rang up an estimated $63.5 million in movie tickets over the weekend, more than tripling the box office receipts collected by its nearest competitor. It's a bigger opening than the $60.2 million that Kung Fu Panda scored earlier this year, although the martial arts-savvy panda flick went on to generate $630 million in worldwide ticket sales.
Madagascar 2 may not make it that far. Reviews have been mixed and the film's initial push comes from the brand recognition behind the 2005 original, detailing the plight of misplaced city zoo animals.
The Shrek musical may not be a major contributor to the company's income statement, but it follows the Disney (NYSE: DIS) blueprint. The family entertainment giant gave Broadway a shot with live stage interpretations of box office gems like The Lion King and Beauty & the Beast. It's going so well that The Little Mermaid and Mary Poppins have followed suit.
So approach Shrek on Broadway as an incremental revenue stream. Even if it never cracks the list of Top 10 best-sellers on Hollywood Media's (Nasdaq: HOLL) Broadway.com, it enhances the brand while also appealing to a more upscale audience.
The DVD release of Kung Fu Panda yesterday is the one move that should pay immediate dividends. Unlike a theatrical release that has to recoup hefty costs before contributing to the bottom line, moving millions of copies will have a material impact in the current quarter.
Heading into the holidays, DreamWorks Animation is bound to get some loving from the studio's licensing partners, like video game maker Activision Blizzard (Nasdaq: ATVI) and stuffed-animal retailer Build-A-Bear Workshop (NYSE: BBW), but moving Kung Fu Panda on DVD and Sony's (NYSE: SNE) Blu-ray will be the difference between feast or famine at DreamWorks Animation.
After beating Wall Street expectations for 12 consecutive quarters, it's a safer bet to bank on the feast.
Here are a few panda games to play:
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