Wall Street hammered Disney stock today as the company announced that it planned to write off some $47 million dollars of fourth-quarter earnings because of the disappointing box office debut of Treasure Planet, which managed an opening weekend gross of only $12 million, one of the most dismal debuts in the history of Disney animation.  Treasure Planet, which cost an estimated $100 million to $120 million to produce, may be one of the last mega-budget animated features from Disney, which has been working hard to lower costs on its animated features.  In addition to the cost of production the authoritative website Box Office Mojo estimates that Disney has spent another $35 million promoting Treasure Planet, and Disney executives expect that the total loss from the film could approach $74 million.

 

Ironically the bad news from Treasure Planet interrupted a spate of positive events for the studio that included a stronger than expected performance from the Santa Clause 2 live action film, a World Series victory from the company-owned Anaheim Angels, and a modest improvement in ratings at Disney's ABC network.  A decade ago the animation department was carrying the studio, but in spite of a solid, if unspectacular $145 million gross from the Lilo & Stich animated feature this summer, the studio's animated offerings have been on a downward slide over the past five years -- a slide masked by the sterling performances turned in by the Pixar-produced films released by Disney such as Monsters, Inc.

 

It may be somewhat premature to write off Treasure Planet since the film opened in the wake of the Harry Potter juggernaut, which was aimed at roughly the same audience.  It is possible that Treasure Planet will find its audience eventually, if not in theaters, then on DVD, where the margins for the studio are even better, but for now Treasure Planet is a major disappointment, and the well designed Treasure Planet merchandise (see 'Licensing Is Back At Hasbro') is likely to languish.