Dreamworks Animation: What Went Wrong?

[Sal]

Well, Katzenberg flat out said that he thinks DWA is worth at least as much as Disney paid for Pixar, which by the way is probably more than Hasbro's total market capitalization at the moment. Well, DWA is bigger than Pixar and they produce movies at a significantly faster rate, but the problem is that they're way behind in terms of profitability.

 

Yeah, they're all waiting for Katzenberg to come crawling instead of wearing a DreamWorks face.

 

The trouble is, he wants to have his cake and eat it too.  Hasbro buying would still have him heading DW animation but he also wants to get more money from the sale too.

 

And he can say what he wants about the worth of DW animation, but that doesn't mean the potential buyers will agree.  Comparing to Pixar is a bad move because yes, DW has produced more animations faster but overall they have less critical acclaim (and to some degree, less profitability).  They've got good profitable ones but also not so good ones.  When Disney bought Pixar, Pixar didn't have a single flop.  It had an incredible run.  If they'd produced twice as many movies but 1/3 of them had been awful, they wouldn't have been worth as much in perceived value.  Quality over quantity.

 

Not to say that DW can't do quality (I think given the right push, they can) but to say that they're equal to Pixar in value (when Disney bought it) is a bit much.

[AniNate]

Judging by Penguins' reviews, their predicament doesn't look to be improving any time soon. They really don't have anything worth getting excited about for at least the next two years.

Edited November 15, 2014 by tribefan695

[Mojoguy]

Judging by Penguins' reviews, their predicament doesn't look to be improving any time soon. They really don't have anything worth getting excited about for at least the next two years.

Reviews for Penguins are already out? Where?

[Sir Tiki]

Reviews for Penguins are already out? Where?

 

http://www.hollywoodreporter.com/review/penguins-madagascar-film-review-748219

 

http://variety.com/2014/film/reviews/film-review-penguins-of-madagascar-1201353894/

 

http://www.thewrap.com/penguins-of-madagascar-review-benedict-cumberbatch-john-malkovich/

Edited November 15, 2014 by Sir Tiki

[Mojoguy]

http://www.hollywoodreporter.com/review/penguins-madagascar-film-review-748219

 

http://variety.com/2014/film/reviews/film-review-penguins-of-madagascar-1201353894/

Thanks!

[Sir Tiki]

You're welcome.

Edited November 15, 2014 by Sir Tiki

[Sal]

http://www.hollywoodreporter.com/review/penguins-madagascar-film-review-748219

 

http://variety.com/2014/film/reviews/film-review-penguins-of-madagascar-1201353894/

 

http://www.thewrap.com/penguins-of-madagascar-review-benedict-cumberbatch-john-malkovich/

 

I hate that screendaily refuses to show reviews unless you buy a subscription.

 

What does theirs say?

 

Edit: I noticed you changed it to an article at The Wrap, but I still hate Screendaily.  Their subscription price is so bloated.  "as little as £19 a month"? Give me a break.

Edited November 15, 2014 by Sal

[Avatree]

Judging by Penguins' reviews, their predicament doesn't look to be improving any time soon. They really don't have anything worth getting excited about for at least the next two years.

Penguins will do fine, nothing amazing, particularly domestically, but I am not too worried about it.

 

As for the next two years, they have a couple of new properties out each year and those are rarely "worth getting excited about" when there's so little info. One tends to hit while the other misses. In 2015, Home and BOO don't look particularly amazing (though I think Home could connect with kids pretty well) but one of them will likely be able to launch a franchise. They also have Kung Fu Panda 3 which will do well.

Same thing goes for 2016 - two new films, one of which will probably fail and the other will do great. Nothing to be "excited" about but again, DW rarely has something you should be excited about.

[Sal]

Penguins will do fine, nothing amazing, particularly domestically, but I am not too worried about it.

 

As for the next two years, they have a couple of new properties out each year and those are rarely "worth getting excited about" when there's so little info. One tends to hit while the other misses. In 2015, Home and BOO don't look particularly amazing (though I think Home could connect with kids pretty well) but one of them will likely be able to launch a franchise. They also have Kung Fu Panda 3 which will do well.

Same thing goes for 2016 - two new films, one of which will probably fail and the other will do great. Nothing to be "excited" about but again, DW rarely has something you should be excited about.

 

That's the problem with Dreamworks.  They're good at making "okay" to "good" movies, but if they cut back on releasing so many they could bring the quality up considerably.  Building a rep for great movies is a benefit in the long run, more than releasing lots of movies that barely make their costs back.

 

People should be excited for their movies.  Otherwise something is wrong with what they're doing.

Edited November 15, 2014 by Sal

[AniNate]

Same thing goes for 2016 - two new films, one of which will probably fail and the other will do great. Nothing to be "excited" about but again, DW rarely has something you should be excited about.

 

If they have someone with a proven pedigree on one of them and/or the premise seems to have potential, that can be worth being intrigued by (ie Chris Sanders with The Croods). But their immediate future seems to be in the hands of a lot of first time directors that give no reason to doubt that they're just yes-men doing what Katz says. 

 

Captain Underpants is their next big wild card (assuming it actually happens). That could be a ton of fun if they were able to stay true to the meta-silliness of the books.

[Sir Tiki]

I hate that screendaily refuses to show reviews unless you buy a subscription.

 

What does theirs say?

 

Edit: I noticed you changed it to an article at The Wrap, but I still hate Screendaily.  Their subscription price is so bloated.  "as little as £19 a month"? Give me a break.

 

I have no idea what theirs says, since I'm not subscribed to them either. I posted the link from RottenTomates before I found out you had to pay to read it. RT has their review listed as "fresh" though.

[Jonwo]

The trouble is, he wants to have his cake and eat it too. Hasbro buying would still have him heading DW animation but he also wants to get more money from the sale too.

And he can say what he wants about the worth of DW animation, but that doesn't mean the potential buyers will agree. Comparing to Pixar is a bad move because yes, DW has produced more animations faster but overall they have less critical acclaim (and to some degree, less profitability). They've got good profitable ones but also not so good ones. When Disney bought Pixar, Pixar didn't have a single flop. It had an incredible run. If they'd produced twice as many movies but 1/3 of them had been awful, they wouldn't have been worth as much in perceived value. Quality over quantity.

Not to say that DW can't do quality (I think given the right push, they can) but to say that they're equal to Pixar in value (when Disney bought it) is a bit much.

Disney were in a bad state when they acquired Pixar and having Lasseter in charge of WDAS has helped them enormously so the $7.6bn they've paid for Pixar paid off for them.

The three films a year strategy is hurting DWA more than helping them and with the competition producing films that are not only successful but cost less therefore are more profitable, DWA is feeling the pinch and its only going to get worse.

Its funny that both DreamWorks SKG and Animation are in the doldrums as 20 years ago it was the new kid on the block who where ready to challenge the studios, now DW SKG hasn't had a hit in two years and the hits they had belong to Paramount and DWA has done better but has had flops and underpeformers. I wouldn't be surprised if SKG ends up being folded into Amblin or bought by another studio and DWA I think will be sold as well.

Edited November 15, 2014 by Jonwo

[Avatree]

That's the problem with Dreamworks.  They're good at making "okay" to "good" movies, but if they cut back on releasing so many they could bring the quality up considerably.  Building a rep for great movies is a benefit in the long run, more than releasing lots of movies that barely make their costs back.

I don't really agree. If they can pump out 2 new IPs a year and make one good and one barely break even (or even lose them money), then they will write the bad one off, and make 4 more films, a TV show and a toy line out of the other. In theory that's a pretty decent business model, in my honest opinion.

 

In reality, clearly something is going wrong since they are making so little profit, but I like the way they produce movies. Yes, it means they produce a lot of rubbish films, but it also means we get a lot of good franchises.

[AniNate]

I really don't think making great movies is as simple as cutting down your production rate. Those kinds of films can only come if the studio promotes the culture that produces them. The closest Dreamworks has come to greatness was when they let some truly talented and assertive personalities make them (DeBois/Sanders). Their business model is mostly based on giving parents bearable ways to kill 90 minutes, and that has to change if they're going to stay relevant in an increasingly competitive industry.

Edited November 15, 2014 by tribefan695

[Jonwo]

I don't really agree. If they can pump out 2 new IPs a year and make one good and one barely break even (or even lose them money), then they will write the bad one off, and make 4 more films, a TV show and a toy line out of the other. In theory that's a pretty decent business model, in my honest opinion.

In reality, clearly something is going wrong since they are making so little profit, but I like the way they produce movies. Yes, it means they produce a lot of rubbish films, but it also means we get a lot of good franchises.

DWA cannot afford to write off another flop, the failure of Guardians resulted in job losses as did the failure of Turbo and they are cost cutting by moving production to China and India.

The Animation market is oversatuared and i fear we may see one or two studios closing down and DWA will IMO probably downsize as well

[Avatree]

I really don't think making great movies is as simple as cutting down your production rate. Those kinds of films can only come if the studio promotes the culture that produces them. The closest Dreamworks has come to greatness was when they let some truly talented and assertive personalities make them (DeBois/Sanders). Their business model is mostly based on giving parents bearable ways to kill 90 minutes, and that has to change if they're going to survive in an increasingly competitive industry.

Was that comment aimed at me? Because I don't disagree; I wasn't saying that in order to make great films they should slow down the production rate.

[Sal]

I'm not saying they should necessarily make less movies a year, but if they're regularly producing one good movie and one mediocre movie, then maybe they need to rethink their tactics.  There should be no reason to have to 'cover' a bad movie with the profits from a good one when you could focus on quality control and make TWO good movies.

[AniNate]

Was that comment aimed at me? Because I don't disagree; I wasn't saying that in order to make great films they should slow down the production rate.

 

No, it's aimed at the general sense that Dreamworks is struggling because they're releasing too many films. I don't think that's the problem in itself. It may be the result of their "Just don't embarrass ourselves and profit" MO, but it would be possible for a studio as big as they are to produce three terrific films a year if they were so inclined. 

Edited November 15, 2014 by tribefan695

[Sal]

No, it's aimed at the general sense that Dreamworks is struggling because they're releasing too many films. I don't think that's the problem in itself. It may be the result of their "Just don't embarrass ourselves and profit" MO, but it would be possible for a studio as big as they are to produce three terrific films a year if they were so inclined. 

 

I agree.  The problem is in their approach.  There shouldn't be a point where they think 'hey this movie doesn't need to be great, it just has to be out there'.

[Jonwo]

I agree. The problem is in their approach. There shouldn't be a point where they think 'hey this movie doesn't need to be great, it just has to be out there'.

The problem is that I think when it was just them, Pixar, WDAS and Blue Sky and CG was a novelty. They did get complacent and it shows in films like Shark Tale and Bee Movie, Flushed Away which was a flop suffered because there was too much interference and they should let Aardman alone, Katzenberg tried to meddle with Wallace and Gromit but Nick Park refused any changes.

I think with studios coming up with more animated films a year, DWA needs to step up their game otherwise they're going to lose out.

Edited November 15, 2014 by Jonwo