The domestic box office caved in faster than the roof of the Metrodome last weekend after two openings disappointed.
News Corp.'s (Nasdaq: NWS) The Chronicles of Narnia: The Voyage of the Dawn Treader opened with just $24 million in domestic box office receipts, less than half of the first two movies in the series, and The Tourist made only $16.5 million. The push for Narnia's RealD (NYSE: RLD) screening didn't help move sales higher as movie patrons decided to stayed home instead of hitting the movies.
Dreamworks (Nasdaq: DWA) has also taken a hit this week on continually disappointing results from Megamind. The third film released by Dreamworks this year is its worst performing film, and the performance has helped to push the stock lower, falling 6.2% over the past month. BTIG analyst Richard Greenfield fueled the fire yesterday, maintaining his sell rating and lowering his price target to $25.
But the holiday season didn't start out this poorly. Time Warner's (NYSE: TWX) Harry Potter and the Deathly Hallows: Part 1 has already grossed $258 million in domestic box office since it opened Thanksgiving week. And Harry's performance has helped push shares of IMAX higher. Maybe it was the cold last weekend, maybe it was uninspiring films -- whatever it was, people have decided they have better things to do than see these films.
After a tired week, the industry needs a strong push through the end of the year and Disney (NYSE: DIS) is hoping it has the film for the job. Disney's TRON: Legacy is supposed to be a technical masterpiece that will test the draw of IMAX (Nasdaq: IMAX) theaters. IMAX has taken more share in action movies than family films, and if TRON is the hit Disney hopes it is, it should be a boon for IMAX. Of course, a poor opening could disappoint investors heading into the holidays.
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At the Movies:
