Here's What Killed Disney's "The Lone Ranger"

In May, I wondered whether The Lone Ranger had what it takes to become Disney's (NYSE: DIS  )  next huge franchise.

After all, Disney did pile a reported $215 million into production of the film, while optimistically noting that it had all the makings of a winner, including a classic, well-known storyline, big names in Pirates of the Carribean franchise director Gore Verbinski and producer Jerry Bruckheimer, and the prowess of Pirates star Johnny Depp to boot.

disney stock

Image source: Disney.

What's more, some reports say Disney spent more than $100 million marketing the movie in an effort to bolster excitement for the title before its release.

In fact, less than two weeks ago it seemed the studio was already planning more, when all three of the film's most significant actors (in Depp, Armie Hammer, and Ruth Wilson) went on record to say they'd love to shoot multiple sequels if Disney deemed the effort worthwhile.

Here's who didn't care
Unfortunately, that's looking much less likely after the big-budget Western took in a meager $48.7 million domestically at the box office during the five days since its debut on Wednesday, including a paltry $29.2 million take over the calendar weekend.

Of course, it didn't help when critics largely panned The Lone Ranger before its opening.

However, the first weekend's results also revealed a more troublesome trend for the aspiring franchise: 68% of The Lone Ranger's audiences last weekend were over 25, with only 16% under 18. Meanwhile, one in four Ranger moviegoers last weekend was over 50 -- a massively atypical audience structure compared with what Disney is generally accustomed to welcoming.

Simply put, younger consumers just aren't interested in seeing what this old-school storyline has to offer.

Instead, they largely chose to check out Despicable Me 2 from Comcast's (NASDAQ: CMCSA  ) Universal Studios. That film hauled in a whopping $143.1 million domestically in its first five days, including an $83.5 million domestic gross during the three-day calendar weekend. For those of you keeping track, that extended holiday weekend gross beats even Disney Pixar's Toy Story 3, which held the previous record for the best five-day start for an animated movie at $141 million. 

They wouldn't keep it going ... would they?
Then again, 55% of the Despicable Me 2 audience was predictably under 25, and critics didn't seem to mind praising the animated sequel. Looking back, though, we should also remember that the original Despicable Me took in just $56.4 million during its own 2010 opening, so there's always hope for better things to come.

That's why I can't help wondering whether the House of Mouse is mulling whether it should simply call The Lone Ranger franchise quits now, or instead keep the sequel train rolling in an effort to recoup its earlier losses. Of course, there's also the possibility that the first Lone Ranger could miraculously maintain some momentum and find a way to pay for itself, but that's not exactly the norm in the movie biz, as ticket sales quickly taper off.

With that in mind, however, apparently Verbinski opted for the all-too-expensive effort of constructing his own period trains as well as an incredibly long stretch of custom train tracks for this first film, so it's possible everyone was betting on making these upfront investments with lower production costs down the road for Lone Ranger sequels.

And while Disney stock did manage to close up more than 1.4% despite the flop, as investors assumed the strong showing from Iron Man 3 could carry the Disney's studio segment through any potential writedowns -- remember that Iron Man 3 has taken in more than $1.2 billion in worldwide ticket sales to date -- I wouldn't be completely surprised if Disney decided to move forward with more if the first film comes even close to paying for itself, given other opportunities down the road with Blu-ray and DVD sales, merchandising, and supplemental deals with video streaming operations such as Netflix and Amazon.com's Prime service.

In the end, then, I still think there's a chance The Lone Ranger could serve as a nice supplemental catalyst franchise to boost Disney Stock over the long run.

But what do you think? Could Disney be crazy enough to keep The Lone Ranger going after last weekend's results?

More expert advice from The Motley Fool
Of course, we should also remember Disney's efforts extend well beyond the big screen, and the future of television has already begun with an all-out $2.2 trillion media war that pits cable companies such as Cox, Comcast, and Time Warner against technology giants such as Apple, Google, and Netflix. The Motley Fool's shocking video presentation reveals the secret Steve Jobs took to his grave and explains why the only real winners are these three lesser-known power players that film your favorite shows. Click here to watch today!

 


Read/Post Comments (5) | Recommend This Article (12)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 08, 2013, at 8:56 PM, stockdissector wrote:

    They would need to have a lower production and marketing budget to make it work. Disney spent too much money on advertising John Carter.

  • Report this Comment On July 08, 2013, at 8:57 PM, stockdissector wrote:

    .....as well.

  • Report this Comment On July 08, 2013, at 9:06 PM, TheDumbMoney wrote:

    I think among other things that casting Depp as Tonto is not really stylishly anti-PC, but is actually somewhat offensive. Heck, if you're going to do that, why not let Mickey Rooney reprise his Chinaman character from Breakfast at Tiffanies as an old Chinese man forced to work building the railroad or something.

    Aside:

    stockdissector, I though John Carter was somewhat hokey, but I liked it. I do think it suffered similar defects. They are both old franchises that worked in their era, but don't work as well now. After Alien/Aliens, etc., and after actual exploration of Mars by rovers for years, John Carter just feels hopelessly old-fashioned.

  • Report this Comment On July 09, 2013, at 1:19 PM, GrumpyOldGuy wrote:

    Disney killed the Lone Ranger by making a really bad movie.

    http://www.rottentomatoes.com/m/the_lone_ranger/

  • Report this Comment On July 09, 2013, at 2:52 PM, XXF wrote:

    I never saw John Carter but know that it performed particularly well overseas resulting in a [barely] profitable movie, but it didn't end up being the flop people kept calling it. We'll see how this one does throughout its theater run, but even with it's opening week I could see it making enough to make a $150MM budget sequel very attractive.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2527032, ~/Articles/ArticleHandler.aspx, 9/3/2014 12:46:23 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement