Will new hit movies increase Hollywood’s stocks?
On May 4 Sony Entertainment released its highly anticipated superhero film Spider-Man 3. This was also the first of the summer’s blockbusters to be released. This week Dream Works will release Shrek the Third and then Disney will release Pirates of the Caribbean: At World’s End, followed by Time Warner who will be releasing such movies as Harry Potter and the Order of the Phoenix.
Only a couple of days after Spider-Man 3 opened with $151.1 million in sales causing stock to $54.41 per share. However, the second weekend of this movie was not so good and stocks dropped to $52.70.
Franchise films are ensured of having a built-in audience. Over the next 4 months, 8 of this type of movie will be released. This means that some of these movies will not get the type of running time that they are use to having before competition begins. For this reason, these movies have to concentrate on reaching their biggest audiences during the first week of their release. The first test of staying power will be between Spider-Man 3 and Shrek the Third.
The studio that has been disappointed so far this year and thus has the most to prove is Warner Brothers. They really need to have a strong showing this year. With the release of Harry Potter, Ocean’s 13 and Rush Hour 3, Warner Brothers may be able to do it this year. This is just one of the many things that will make it an interesting summer at the box office for stock holders this year.