Marvel (NYSE: MVL) is all about making movie franchises these days. For instance, the success of Iron Man has led to plans for a sequel. Shareholders are, understandably, happy about this since a series of blockbuster films will rake in a lot of money for the company and have a positive effect on the shares.
But, Marvel's second movie out of the gate, The Incredible Hulk, may not get the sequel treatment, according to the Hollywood Reporter. The article implied that the financial performance of the film may not have been blockbuster enough to make a sequel inevitable. That doesn't mean that it won't eventually get one, but since there are, as of now, no plans for another Hulk, the speculation is out there. As aforementioned, we already know that there will be another Iron Man.
As a Marvel shareholder, I am disappointed by the box-office results for this latest iteration of the Hulk (even the first weekend seemed weak). Back in 2003, when that year's movie version of the character was released, there was widespread disdain for the project (I myself couldn't stand the flick). Then came this summer's so-called reboot of the franchise. Unfortunately, as of now, 2008 Hulk hasn't done much better than 2003 Hulk.
According to Boxofficemojo, this year's version has taken in $126.2 million through Tuesday while the version released five years ago had $125.7 million at this same point (i.e., twenty-six days into the release). That isn't impressive at all, considering inflation and the fact that Marvel self-produced the film itself. This brings to mind a question: Is it Marvel's fault that the movie isn't setting the box office on fire, or the distributor, General Electric's (NYSE: GE) Universal? This is an important question to shareholders, since they are banking on Marvel's ability to properly present its intellectual-property library on the silver screen to maximize shareholder value.
Who knows who dropped the ball. I didn't see the movie, so it's difficult for me to say. What I would proffer is the following: Marvel should consider a sequel, but it should make the project for as little money as possible. Find some different angle to the universe that will be both fascinating and cheap. Sounds like it can't be done? It can be. Just takes some deep thinking and some strong innovation. Heck, it just takes creativity, and Marvel is supposed to have a lot of that, right?
Disclosure: I own GE and Marvel; positions can change at any time.
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Reader Comments (Page 1 of 1)
7-10-2008 @ 12:06PM
Erik said...
Steve, you're a shareholder yet don't concern yourself with the product while it's in release? Odd. I agree with most of what you have said. Unfortunately, 'The Incredible Hulk' is not a sure-fire blockbuster by any means... and it's tragic because it's a flipping fantastic film. Judging by the box office numbers now and into the coming weeks, it will surpass Ang Lee's domestic take, and the international will bode nicely as well. Also, this film is going to sell A TON of DVD's/Blu-Ray's. The digital video market is bigger than ever and can turn modest box office earners into financial Gods (i.e. 2004's 'Hellboy). Have faith. I guarantee a sequel would own the box office. BTW: making a 'Hulk' film for cheap is near impossible because the audience wants MORE of the green guy... and that green guy happens to be an expensive CGI effect every second he's on film.
7-11-2008 @ 4:44PM
Max said...
I saw The Incredible Hulk and LOVED it! I need a sequel or I may die. I hope that the film does amazing on DVD and Blu-ray so Marvel would consider a sequel.