Dreamworks Animation: What Went Wrong?

[AniNate]

Well, yes and no. As someone pointed out, it's not that we're getting so many more animated movies now than we did several years ago, but at this point, there's a ton that are top tier, tentpole-like films. Everything WDAS and Pixar does. Everything Dreamworks does. Every Illumination/Universal film. Sony is more mid-range, and Blue Sky is, too, at least, DOM, but there's a ton of friction at the top. Add to that the likelihood that WB's future efforts are also going to aim at the top tier, and Paramount might do that as well.

 

The last "big" animated film was The Lego Movie, and I'm pretty sure it didn't generate the animation fatigue on its own. The number of bland-looking products in between had to have contributed.

[AniNate]

 

The world is big enough to have some both good/big/studio animations and small/indie/crappy animations.

 

I'd rather the indie studios try to find a unique niche with their small budgets, like what Laika is doing. Reel FX, to their credit, do seem to be working on that. "Small and "Indie" doesn't have to be associated with "crappy"

[A Marvel Fanboy]

If there were no second-tier studios to compete, Disney/Pixar would have gone easy and been mass producing garbage animations.

[Jonwo]

I think DWA has nobody to blame but themselves, it's true that every studio is releasing animated films but it doesn't help when Dreamworks are releasing 3 films a year and securing release dates 3-4 years in advance. They are becoming less reliant on films with TV series, consumer products and theme park but I do wonder whether they'll remain independent or will Katzenberg sell it?

[AniNate]

I think DWA has nobody to blame but themselves, it's true that every studio is releasing animated films but it doesn't help when Dreamworks are releasing 3 films a year and securing release dates 3-4 years in advance.

 

Dreamworks does on some level contribute to it themselves producing mostly watchable but forgettable efforts. Still, at least they put some effort into their big slate, so I don't want to fault them as much as the lazy copycats.

Edited June 18, 2014 by tribefan695

[BadAtGender]

So, looking again at the slate of DWA films that have been announced, I'm wondering about which ones could get dropped or slotted further down.

 

The Penguins of Madagascar  Fox  11/26/14Home (2014)  Fox  3/27/15B.O.O.: Bureau of Otherworldly Operations  Fox  6/5/15Kung Fu Panda 3  Fox  12/23/15

 

I'd generally assume that anything that's slotted through the end of next year is at the very least going to happen. However, it's possible that there could be delays. Home will probably stick with that slot, and I actually like KFP3 right at Christmas. It's not a common slot for big animation, and it could pay off well. If it gets to Chipmunks numbers, that would be very solid. So does B.O.O. keep to next summer? Maybe it could get shuffled to 2016.

 

Boss Baby  Fox  3/18/16

How to Train Your Dragon 3  Fox  6/17/16Trolls  Fox  11/4/16

 

At this point, I kinda doubt they're going to keep these release dates. If one of the 2015 films gets shuffled to '16 (probably in the March slot), they may drop one of these entirely. HTTYD3 should get moved to at least November or December (assuming KFP3 works out), and possibly to '17. Maybe they kill both Boss Baby (based on a book?) and Trolls (based on the doll?) entirely. If B.O.O. gets moved to '16, that still leaves them with two for the year.

 

Captain Underpants  Fox  1/13/17Untitled Kevin Lima Bollywood Musical  Fox  3/10/17The Croods 2  Fox  11/3/17

 

Weird breakdown. Given the release date for Captain Underpants, I wonder if it's a deliberate attempt at a lower budget film. I'm actually still pretty excited about the Bollywood Musical, if it happens. And The Croods 2 is a pretty solid bet. Still if any of these gets cut, I bet it's Bollywood.

 

Larrikins  Fox  2/16/18Madagascar 4  Fox  5/18/18Puss in Boots 2: Nine Lives & 40 Thieves  Fox  11/2/18

 

Larrikins is another film with very little information. Maybe it gets cut, too? The other two are safe sequel bets, though neither looks like it'll break out.  That's a 6-year gap between Madagascar films (although only four after Penguins), and 7 years for Puss in Boots.

 

So taking the biggest cuts, that would be:

2014 - Penguins

2015 - Home, KFP3

2016 - BOO, HTTYD3

2017 - Captain Underpants, Croods 2

2018 - Madagascar 4, Puss in Boots 2

 

One advantage of this is that it keeps two films a year, but it switches up between doing a sequel and doing something more original each year (until 2018), so they can attempt to build franchises without going overboard in either direction.

[Jonwo]

I imagine the 2015 films are too far into production to be cancelled, I reckon they'll make changes to the 2016 schedule, maybe swap Trolls with HTTYD3. Weirdly there is no summer 2017 film so perhaps they may schedule Dragon 3 for 2017 and move up Captain Underpants for November 2016 and Trolls for June 2016

[Sir Tiki]

It looks like DreamWorks Animation is getting sued over Turbo:

 

DALLAS, Aug 10, 2014 (BUSINESS WIRE) -- Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor LLP announce that a federal class action lawsuit has been filed against DreamWorks Animation SKG Inc. (“DreamWorks” or “Company”) (nasdaqgs:DWA) and several officers and directors for acts taken during the period of October 29, 2013 to July 29, 2014 (the “Class Period”).

 

[...]

 

In the complaint, the defendants are alleged to have violated certain provisions of the Securities Exchange Act of 1934. Specifically, the complaint alleges that the Company misrepresented and/or failed to disclose that DreamWorks failed to timely take a write-down for its Turbo movie, which substantially inflated the Company’s net income for the fiscal year of 2013. This failure shows that the Company lacked the necessary internal controls over financial reporting. Due to these things DreamWorks’ financial statements were materially false and misleading at all relevant times. According to the complaint, when the truth came out DreamWorks’ stock plummeted.

 

http://www.marketwatch.com/story/dreamworks-animation-skg-shareholder-alert-former-sec-attorney-willie-briscoe-and-powers-taylor-investigate-possible-breaches-of-fiduciary-duty-by-officers-and-directors-2014-08-10?reflink=MW_news_stmp

 

[narniadis]

Interesting - I honestly don't understand how those things work - but they didn't hide the fact they were taking a write down on the film, I mean it was everywhere media news wise from the time the pic opened? Similar to John Carter and Lone Ranger - Disney didn't waste time writing those puppies off.... but then again I am probably majorly misunderstanding this.

[Walt Disney]

Interesting - I honestly don't understand how those things work - but they didn't hide the fact they were taking a write down on the film, I mean it was everywhere media news wise from the time the pic opened? Similar to John Carter and Lone Ranger - Disney didn't waste time writing those puppies off.... but then again I am probably majorly misunderstanding this.

 

The lawsuit claims that they didn't take the write-down when they were required to by law. Therefore, the stock price was over-inflated. So anyone who bought the stock in that time period after Turbo was released but before the write-down was taken was paying more for the stock than it was worth. Once the write-down was finally taken, the stock price dropped and people lost money.

[Jonwo]

The different between DWA and the other animation studios is that they are independent. The others are part of a wider company and if a film does underperform, it's not good but the studio has other films so they can take the hit whereas DWA needs every film to be successful and that's tricky especially as there is so much competition at the moment. They are trying to diversify with TV, theme parks, online etc but I wonder how long they can remain independent especially considering that they've lost money on their last couple of films.

Edited August 11, 2014 by Jonwo

[chimpo]

The lawsuit claims that they didn't take the write-down when they were required to by law. Therefore, the stock price was over-inflated. So anyone who bought the stock in that time period after Turbo was released but before the write-down was taken was paying more for the stock than it was worth. Once the write-down was finally taken, the stock price dropped and people lost money.

People who didn't spend time analysing a company which stock they are buying are simply dumb and greedy.

[Mojoguy]

The lawsuit claims that they didn't take the write-down when they were required to by law. Therefore, the stock price was over-inflated. So anyone who bought the stock in that time period after Turbo was released but before the write-down was taken was paying more for the stock than it was worth. Once the write-down was finally taken, the stock price dropped and people lost money.

Those people that bought DW stock after Turbo opened are a bunch of morons. EVERYONE knew that Turbo was a flop the moment the first Friday numbers came in.

[DAJK]

Those people that bought DW stock after Turbo opened are a bunch of morons. EVERYONE knew that Turbo was a flop the moment the first Friday numbers came in.

Nevertheless, I thought Turbo was really fun!

[DAJK]

Does anyone think DWA might get a franchise out of one of their 2015 original films? B.O.O or Home?

 

Right now, I'd put my money on B.O.O, it sounds like it could be pretty good!

[FrozenUnicorn]

Does anyone think DWA might get a franchise out of one of their 2015 original films? B.O.O or Home?

 

Right now, I'd put my money on B.O.O, it sounds like it could be pretty good!

Yeah, honestly B.O.O. and KFP3 are the only upcoming DW movies I feel really excited for.  I may give Captain Underpants a watch though because I liked the books when I was growing up.  

 

I feel annoyed that they're making a fourth Madagascar film though, the third was a great conclusion and anything else will feel just tacked-on.

[CaptainJackSparrow]

I am anticipating Penguins of Madagascar, Kung FU Panda 3, and Captain Underpants.

[TServo2049]

I was surprised by KFP1, and though I never got around to seeing KFP2, I'll probably see KFP3.Of course, the only DWA movie I'm really truly anticipating is HTTYD3.

[Goffe]

I was surprised by KFP1, and though I never got around to seeing KFP2, I'll probably see KFP3.Of course, the only DWA movie I'm really truly anticipating is HTTYD3.

KFP2 is better than the original, you should watch it

[Ethan Hunt]

I was surprised by KFP1, and though I never got around to seeing KFP2, I'll probably see KFP3.Of course, the only DWA movie I'm really truly anticipating is HTTYD3.

See Kung Foo Panda 2!