Also in this playlist...
This transcript is automatically generated
-- there -- we -- know Jeffrey Katzenberg DreamWorks Animation Ford's big hits like Shrek and Madagascar are.
Happens when not every movie is pumping out such a hit how much damage does do the company's bottom line.
Here's more my interview with CEO Jeffrey Katzenberg.
As we all know and anyone who's watched it for a period of time it is a very tough business and not everything to be huge hit like track.
You know DreamWorks animations past thirteen -- -- grey I need for a quiet.
Why I know everything you know I don't -- I know it's hard to think that but -- -- with a movie that hasn't been.
You can't -- you haven't had a production budget.
A 130 million the rise of the guardians grossed 302 million.
But you ended up having an almost ninety million dollar write down on that you have had significant layoffs.
350 people on this past year.
Do you think this turns that around.
Well first let me answer the first question witnesses is that.
DreamWorks Animation is made nineteen CG animated movies.
And now thirteen years.
Eighteen of those nineteen have been profitable.
I I don't.
Think -- There's ever been a more consistent.
Profitable movie enterprise.
Then that the average box office of those nineteen movies is over 500 million dollars so it's not just that they were successful.
They were extremely successful guardians -- and we were really proud.
You're right unfortunately.
It didn't hit a -- -- awesome because we do produce.
Our movies -- a very very expensive very high and if we don't hit a bullseye.
You know we can have something that I -- like guardians.
And you know so yes didn't we have to do -- off of that we did but the movie business as a whole has been makes -- -- profitable for.
For our company and and expanding -- television doesn't.
Lessen that risk in it what it does do is -- diversify our revenue.
For sure it creates some stability and and other revenue sources for it but.
You know we love the movie business is very very good tell -- we just had a 600 million dollar hit with the crude.
We're not you know we're not shying away from that business yeah we have three big titles next year.
At the same time you know people talk about trying to take the volatility that you mentioned out of the movie business and may be one way to do that is to charge different prices at the movie theater.
For different tickets I mean this is that we -- Steven Spielberg talked about maybe a two tier system.
Where you have the blockbuster ticket price of the ticket price.
Worth what you would call smaller movies.
Mean there's this idea that they tried with world war Z that may get ticket where it was fifty dollars and you got to go early -- -- got a dvd and you've got popcorn and that sort of thing.
Does it is that how interesting to you where -- charged different prices for different ticket giving that would work better.
Not really not for our product you know we -- our movies are you know.
For the family audience they are seen you know around the world you know 65% of our business done outside of the United States.
You know we are about feed inclusive and creating an experience that the whole family can share together and you know I think those kinds of premium experiences are fine but they're not a replacement for.
You know for our business and and you know I think it is the fact that.
You know our movies are so accessible and are so.
You know reasonable frankly if you think about it.
You know an average ticket price of under eight dollars there's almost no better value that.
You know you can do in terms of going and -- two hours of entertainment -- anywhere on the planet today.
Now but they like it always get -- with the all the merchandise see it's it's not what I spend on taking my kids to the movies it's -- and -- -- Bags in cars and lunch pails of everything else that end up having to buy that's -- really Cosby right think about hadn't taken the -- -- that movie.
I wouldn't be buying that stuff but I digress.
Let me let me ask you one.
If you met -- -- I'm sorry which you which meant to say this is how much we appreciate you joining your kids.
Fall in love with these wonderful characters and they want them to continue -- -- wanna bring -- moment.
And be able to play with -- -- they become their best friend you actually want and again thank you Jeffrey we appreciate that.
I didn't -- me what it I think that it's some sort of rebate program where I can get points in the ending get dollars backers some of the guys spend so endlessly.
Let let me ask you a little bit of a mean question here.
You left Disney to start DreamWorks.
Disney's stock is up 133%.
DreamWorks down 33%.
It is this something that irritates you.
Does -- keep you awake at night and my the first person that's ever mention that you never would have known those stats -- -- got sad at what's your reaction to that.
Well -- listen you know the Disney company is a great company.
You know Bob Iger is just done a stunning job there in -- last decade.
You know and hi I have just the greatest admiration for him in the job that he's done and we're just fifteen little speck compared to.
To them and you know.
We're just trying to build our own enterprise and I have great confidence in where we are today more importantly where we're going in the future.
I think that you know DreamWorks has come into itself is a great brand recognized around the world opportunities opening up.
All the time for us whether it's Netflix here or China or.
You know theme park business is just.
A great horizon for us you know stock market you know up and down they appreciate you they don't appreciate -- you know.
I I think we're on a great track today and you know I'm confident about our future.
Yes they laughed afterwards Tony that that wasn't a mean question.
-- glad to hear anyway.
Filter by section