News
Fourth 'Shrek' Lines Up Promos
May 21, 2010-- DreamWorks Animation issued a detailed press release of promotion tie-in partners for Shrek Forever After, coming as some doubts are being expressed about the box-office potential of the fourth installment of the animated movie franchise.
On May 18, Benjamin Mogil, an analyst at Thomas Weisel Partners, issued a report downgrading DreamWorks Animation stock, citing what h
e called weak audience tracking for Shrek Forever After. It’s fascinating that Wall Street analysts are now basing decisions on internal film industry marketing surveys – the so-called tracking surveys. This has not been the case in the past. Mogil’s downgrade prompted a sharp selloff in DreamWorks stock (NASDAQ: DWA).
A Reuters story notes that DreamWorks Animation is thought to have pulled $1 billion in profit from the first three Shreks and the new installment, which opens in theaters today, is one of just three theatrical releases this year from the company.
In its press release, DreamWorks Animation lists these companies as promoting the movie: Activision (a video game), US Forest Service (Shrek is spokes-ogre for its public service ad campaign) Blue Bunny (ice cream bars), ConAgra Foods (Kid Cuisine), General Mills (Go-Gurt, Green Giant, Betty Crocker and Bisquick), Hallmark (greeting cards), Hasbro Games, Hostess (Twinkies), Hewlett-Packard (long term corporate sponsorship), Langers (juices), McDonald’s (global restaurants), OPI (nail polishes), Playmates (full line of toys), Rubies Costumes, Sanders Art Studios (collectible art), Vidalia (sweet onions), Visa Signature (credit cards) and Vtech (key hardware systems).
Also, Regal Cinemas is selling movie ticket gift cards with Shrek characters. The gift card is issued in denominations of $10, $25 and $50, and the art pictures Shrek, Princess Fiona, Donkey and Puss in Boots.
Perhaps DreamWorks -- singed by the fall in its share price -- issued the tie-in partner press release to calm investors by showing Shrek Forever After has promotional muscle. DreamWorks stock fell 5.9% on Tuesday after the analyst downgrade, shaving off about $170 million from the company’s indicated stock market valuation.
It looks as if the stock analyst downgrade is based on an analyst thinking the movie will do well, but not great, which is tough call to make accurately simply from audience tracking surveys. Those surveys measure anticipation since audiences have not yet seen the film.
For full text, click link below:
finance.yahoo.com/news/Dreamworks-Animation-prnews-2187584332.html
www.reuters.com/article/idCNN1921979720100519
www.businesswire.com/portal/site/home/permalink/
www.marketingmovies.net/chapters/chapter-2-research-audiences-ads/
www.marketingmovies.net/chapters/chapter-4-tieins-prod-placement/