Are you a Disney (NYSE: DIS) shareholder? If so, then you're pretty happy about the box-office weekend. According to Boxofficemojo, Disney's Beverly Hills Chihuahua was number one over the past three days at domestic theaters. It is estimated to have grossed $29 million. That number may change when final stats are released later on, but it won't change the ranking, since the movie in second place, Viacom's (NYSE: VIA) Eagle Eye, grossed around $17.7 million.
Eye was last week's number-one film, and I have to say, I thought the thriller would remain in the top position this week. That's how Hollywood works, though. You're on top one minute, and then the next minute, you're on the way down.
Movies are a very risky business, and I have been critical of how Disney manages its movie operations. I am a shareholder, and I care about how much capital is put at risk on each project and how the deals are structured. Are they structured with the shareholder in mind, or are they tipped toward the pampered stars who demand big percentages of the grosses while not taking on any risk?
But I do admit that the Mouse did well with this one, primarily because I thought it was a concept that was doomed to fail. Seriously, compare the marketing campaigns of Eye and Chihuahua. Did you really believe that the latter would outgross the compelling thriller? A $29 million gross for a goofy film is impressive. While Wall Street has become a financial house of horror, complete with bleeding walls and vortexes to Hell, people were willing to pay good money to see a talking dog. There's something cool in that.
It goes to show the power of the Disney brand and how it can be used to compete against the brands controlled by companies such as News Corp. (NYSE: NWS), Time Warner (NYSE: TWX), and Sony (NYSE: SNE). I don't know how this canine fantasy will play this weekend, but since I thought it was going to bomb, I'll tip my hat to Disney's marketing team for making the opening weekend a success. Now, the movie will have to make it on its own, hoping for good word of mouth due to its intrinsic quality (assuming it has some, of course).
Disclosure: I own Disney; positions can change at any time.
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