Dreamworks In Financial Trouble Due To "Mr. Peabody & Sherman" Losses
The film did alright in box office chart, but not well enough to save Dreamworks' tanking profits.
DreamWorks’ Mr. Peabody & Sherman was widely known as one of the biggest flops of the first quarter this year, but Dreamworks took an even bigger hit than it was originally reported. According to Reuters, DreamWorks Animation SKG Inc reported a first-quarter loss, compared with a year-earlier profit. The poor numbers were apparently due to the low profits from Dreamworks animations’ biggest production this year, Mr. Peabody & Sherman.
Mr. Peabody and Sherman did alright at the box office, but not well enough to save Dreamworks profits.
According to the report, the studio had lost a net total of $42.9 million or 51 cents per share in the January 1 – March 31 period, compared with a profit of $5.6 million, or 7 cents per share, a year earlier. Revenue rose 9.3 percent to $147.2 million.
Mr. Peabody & Sherman tells the story of a talking genius dog and the boy he adopts. How could that premise not do well, right? Due to the film’s losses, Dreamworks took a hit to the tune of $57 million. In light of the recent flops of its biggest movie projects, Dreamworks has begun to move into other areas to secure separate profit sources. . Newly added initiatives include consumer products, digital media and theme parks.
This summer, the company plans to advance its latest effort to expand the scope of its business, this time to YouTube, with short-form content created for its DreamWorksTV channel. The expansion into digital content will be run by Brian Robbins, creator of YouTube network AwesomenessTV, which Dreamworks acquired last year.
Given the failure of its recent movie projects, the studio is moving into other areas.