The ‘Divergent’ Movie Is Getting Terrible Reviews. Here’s Why it Doesn’t Matter

Lions Gate executives are betting that the ‘Divergent’ movie series will pay off as big or bigger than ‘Twilight.’ Early evidence says they’re right.

Mar 24, 2014 at 12:00AM

Divergent Jumping From Train

If critics are to be believed, Lions Gate took an errant leap in backing the Divergent movie series. Source: Summit Entertainment.

To read the reviews for the just-released Divergent movie is to believe that Lions Gate (NYSE:LGF) wasted the bulk of the $85 million it spent to produce the film. Only 53 of the 132 reviews tracked at Rotten Tomatoes rate the film as fresh, and even those come with qualifiers.

"If you can forget what it's saying, Divergent is fairly entertaining," reviewer David Edelstein wrote for Vulture. Just the sort of backhanded compliment I'd expect if the intent is to explain why an otherwise mediocre movie might succeed despite itself.

I've yet to see Divergent so I can't comment on its quality. What I can tell you is that bad reviews won't keep this movie from making serious moola for Lions Gate. Here's why:


Domestic weekend opening

at least $53 million (est.)

$69.6 million

Rotten Tomatoes (critics / audiences)

40% / 81%

49% / 73%




Sources: The Hollywood Reporter, The Numbers, Rotten Tomatoes, CinemaScore.

The read? For all their influence, critics aren't good at predicting box office success or failure. Early audience reaction is far more prescient. Here, all signs point to a warm reception for director Neil Burger's kick-start to the Divergent movie franchise.

After all, not many movies earn an "A" CinemaScore -- only three others in recent months, including box office winners The Lego Movie, Ride Along, and Mr. Peabody & Sherman. With a better overall CinemaScore, it's a fair bet that Divergent will earn close to the $397.9 million worldwide that Twilight generated in 2008.

And what if it doesn't? Remember the context. Lions Gate subsidiary Summit Entertainment scheduled most of the Twilight and Hunger Games films for November, which tends to be a much better month for movies than March.

Take last year's results. Oz the Great Powerful led the U.S. box office, earning $234.9 million for distributor Walt Disney (NYSE:DIS) and 24% of the total domestic haul for March 2013. Seven months later, The Hunger Games: Catching Fire earned $424.4 million at U.S. theaters, good for about 29% of November's domestic gross. Interestingly, the last time March's top film beat November's best was 2012 when The Hunger Games grossed $408 million at U.S. theaters on the way to earning $684.5 million worldwide.

So ignore the critics, Fool. The ones buying the tickets don't just want  to see the movie -- they want to see an entire Divergent movie franchise.

Your turn to be an analyst
The Divergent movie franchise looks like a winner, but would you buy shares of Lions Gate?  Don't worry if you're not sure how to answer. Everything you need to know you'll find in The Motley Fool's free guide to getting started investing in top media names such as Disney and Lions Gate. Click here to get your copy now -- it's 100% free.

Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Walt Disney at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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