So, let's see. Lions Gate Entertainment (NYSE: LGF) had the number-one film last weekend with Bangkok Dangerous. All I can say is what a difference a week makes, because the film dropped to position number eight this past weekend, according to early estimates from ace movie site Boxofficemojo.com. Of course, this wasn't entirely unexpected, since Dangerous' opening was kind of weak. But fear not, shareholders of Lions Gate, because one of the studio's biggest stars, Tyler Perry, opened relatively well.
Tyler Perry's The Family That Preys took in approximately $18 million, which was good for second place. Burn After Reading held a slight margin of victory over Perry's film. It currently is in first place with about $19.4 million to its credit. It's entirely possible the two could switch places once final figures roll in, but I have a feeling this ranking will stay.
However, one sad thing about Perry is that, important as he is to Lions Gate, his opening weekends seem to be falling in strength. According to this chart at Boxofficemojo,The Family That Preys didn't do as well as the previous two Perry features. Meet the Browns and Why Did I Get Married opened with $20 million and $21 million, respectively. The chart also shows that the final domestic grosses on his films have been in a decline.
There's no doubt that Lions Gate depends on Perry to differentiate its portfolio of movie product from the portfolios of bigger fish such as Disney (NYSE: DIS), Time Warner (NYSE: TWX) and General Electric's (NYSE: GE) NBC Universal. There's also no doubt that his projects must make Lions Gate look attractive (which is the reason why shareholders probably hold the stock, as they certainly are hoping that one of the majors buys the company out).
Lions Gate should nevertheless be careful about the future of the Perry brand. Budgets had better be kept in check, for one thing, although according to the Hollywood Reporter, Perry has been pretty frugal when it comes to his movies. Apparently, Perry's flicks cost less than $20 million to make, and marketing expenses haven't gone above $18 million. However, Perry gets quite a bit of cash -- up to $15 million -- for all the various hats (actor, producer, etc.) he wears. He also gets a hefty piece of the gross at 15%, and he retains ownership of the copyrights on his movies.
That's quite the rich deal, and I have to say that Lions Gate should insist on even lower budgets for his future movies on behalf of shareholders. Of course, that's a silly pipe dream, isn't it? I'm sure Perry wouldn't welcome any sort of reduction in this area. For now, though, Lions Gate can be happy about its performance at the multiplex this weekend. Perry certainly provided a welcome counterbalance to Bangkok Dangerous.
Disclosure: I own Disney and GE; positions can change at any time.
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Reader Comments (Page 1 of 1)
9-18-2008 @ 6:15PM
DARNELL MURRAY said...
MY WIFE & I JUST GOT BACK FROM THE THEATRE SEEING, [ FAMILY THAT PREYS ]. YOU TOUCH BOTH OF US WITH THIS MOVIE! WHEN I WOULD RESPOND TO A CERTAIN PIECE, MY WIFE WOULD SHIST ME TO BE QUIET, YOU MIGHT MIST SOMETHING! I TOOK HEED! GOOD ACTOR'S & ACTRESS. ALL I CAN SAY IS I'M WAITING FOR YOUR NEXT [ ONE ]. GOD BE WITH YOU!
10-13-2008 @ 9:43AM
Sierra Brinson said...
I love all that you do, I trust in the lord and in myself that my dreams will come true ine day! It's silly because I really never had a dream for myself until i heard of
'Tyler Perry", you give me hope and belief that i can do it all, even thought im living like a fish with no water at times, i still have hope. My dream of meeting you is something that i believe will come true someday, it's just a matter of time!!! Your # 1 FAN-Sierra Brinson
sierrabrinson@hotmail.com