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DreamWorks probes 3-D cinema impact on DVD
www.marketingmovies.net/news/wall-st-eyes-monsters-opening/
Apr 29, 2009 – DreamWorks Animation revealed that it conducts systematic research of movie audiences to devine their intent to buy DVDs of films they’ve just seen in cinemas.
“As we have done on each of our feature films, we conducted extensive focus group research following the release of Monsters v. Aliens to gauge consumer reaction and their purchase intent,” DreamWorks Animation chief Jeffrey Katzenberg told a stock analyst conference call yesterday. “According to that research, people who saw it in 3D [in movie theaters] have the same level of interest in owning the DVD as those who saw it in traditional CG. Additionally, more than half of the consumers who have purchased our DVD’s over the last three years have actually never seen the film in the theater to begin with.”
With home video/DVD sales accounting for half the movie industry’s revenue, consumer attitudes toward DVD purchases are critical and the DreamWorks Animation consumer survey indicates 3-D cinema will not diminish interest in DVDs that are 2-D. DVD release typically comes four months after theatrical premiere, and marketers glean what they can from theatrical to be used in the DVD marketing campaigns.
Marketing to Moviegoers: Second Edition, which devotes an 11,000-word chapter to movie research, explains that a “focus group” is qualitative research the elicits views from small, handpicked group of respondents, who are brought together for a discussion.
DreamWorks animation brass said that their films are not caught up in the general DVD sales slide, explaining parents view them as “toy” purchases to be consumed multiple times at multiple location by their children. That's more than a typical DVD movie.
The company also provided the following tidbits in its conference call:
+ Total worldwide ad spending for Monsters v. Aliens came in at 10% less than the company’s original forecast of $175 million. The savings resulted from depressed ad rates due to the recession and currency rate fluctuations lowering costs in foreign territories. (This is rare instance of keeping a lid on marketing escalations. Though not mentioned, DreamWorks Animation has a reputation as spending heavily to market its theatrical releases, so that’s probably the top end for a major studio release).
+ Some 60% of domestic box office dollars came for 3-D showing of Monsters v. Aliens. Internationally, 3-D was far lower, due to a lower percentage of 3-D equipped digital screens.
+ Katzenberg sticks to his forecast that the premium for 3-D ticket prices, which is now $1-2, will eventually grow to $5. So theaters that charge $8 for a regular screening would lift the price to $9-13 for a 3-D presentation of the same movie, depending on what scenario emerges.
+ The cost of 3-D glasses – which is the eyewear for audiences – will soon fall to 50 cents each within a year, from 81 cents currently.
+ International cinema performance of Monsters v. Aliens was inexplicably patchy. The family animated film, which cost $165 million to make, did well in Spain, the UK and Australia, but underperformed in France, Italy and Germany. The company could see no regional trends, given countries next to each other experienced opposite results.
+ In general, DreamWorks Animation films gross $1.75 internationally for every $1 domestically, which is one of the more foreign-tilted ratios for a major studio. Paramount Pictures handles physical distribution.