As "Spider-Man 3" breaks box office records, its studio Sony Corp. (NYSE: SNE) is about to hit milestone that's not worth celebrating.
The Japanese conglomerate may report its worst quarterly loss in four years tomorrow because of lackluster sales of the PlayStation 3, according to Bloomberg News. The company's movie division, of course, is a bright spot for Chief Executive Howard Stringer.
But before investors' spidey senses start tingling, some reality is in order.
For one thing, "Spider-Man 3" was an extremely expensive film to make. Media reports say it was the costliest film in the history of Hollywood. Radar magazine pegs the price tag at $500 million, Sony says the figure is closer to $270 million.
Everyone agrees that it rewrote the rulebook in Hollywood.
"Reports of Sony's record-breaking gamble have created a stir among entertainment insiders, seeming to evoke some combination of schadenfreude and envy," Radar said, adding that one source remarked: "Those are crazy numbers."
People in Hollywood know crazy when they see it.
"Spider-Man 3's" box office, which already is more than $240 million, is impressive. But remember these are gross figures, which aren't all going to be realized as profit. Eventually, the movie will help the company's bottom line but it may not be the bonanza people expect.
Only a select few people in Hollywood know what magic box office figure "Spider-Man 3" has to hit before the movie turns a profit and they aren't talking. The boffo box office may not last either.
There is plenty of summertime competition coming for "Spider-Man 3" including Walt Disney's Co.'s (NYSE: DIS) "Pirates of the Caribbean: At World's End" which debuts May 24.
Will Toby McGuire's Spider-Man defeat Johnny Depp's Captain Jack Sparrow? It should be interesting.
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