Disney Box Office Battle - Can They Reclaim the Top Spot?

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Disney's box office dominance is threatened as Paramount leads, yet executives remain poised for a comeback by year-end.

In a year marked by a reduced film slate, Disney's traditional dominance at the box office is under threat. The company's executives, however, remain confident that they can still claim the top spot by the end of the year. "We'll be there by the end of the year," asserts Chuck Viane, distribution president, though he acknowledges it will be a close race with Paramount and Warner Bros.


Paramount currently leads the pack, bolstered by the success of films like "What Women Want." Warner Bros. also poses a significant challenge, with highly anticipated releases such as Steven Spielberg's "A.I." and the family fantasy "Harry Potter and the Sorcerer's Stone" still to come. Last year, Disney narrowly beat Universal, which had a string of successful releases in the second half of the year, including "Dr. Seuss' How the Grinch Stole Christmas."


While market share is a goal, Viane emphasizes that profitability is the primary concern. "It is something we strive for each year, but we'd rather be profitable," he says. This shift in focus is reflected in the way bonuses are now structured, with more emphasis on the bottom line of the film division rather than just market share.


Disney's current position is mid-pack, ranking fourth among domestic distributors, despite the strong performance of "Pearl Harbor." This is partly due to the decision to release fewer films this year. Through last weekend, Disney had only opened four films, compared to 10 each from Warner Bros. and Sony. This year, Disney is scheduled to release just 16 films, a significant reduction from last year's 21. This strategy is in line with Michael Eisner's aim to produce fewer, less expensive pictures.


However, quantity isn't the only factor in market share. Paramount, for instance, has released only one more movie than Disney this year but leads all distributors with 12% of the domestic market share, thanks to hits like "Save the Last Dance."


Looking ahead, Disney has a few potential blockbusters, including "Monsters, Inc.," which is expected to gross over $200 million domestically and compete for the first-ever animated-feature Oscar. Other promising releases include "The Princess Diaries" and "Black Sheep," both set for late-year releases.


Despite these challenges, Disney's Buena Vista International has consistently led in foreign box office, taking the crown last year with $1.31 billion. However, the new focus on profit over market share may signal the end of Disney's reign as the top market-share leader. As entertainment analyst David Davis notes, "If Disney has to give up the title of market-share leader in order to enhance its stock price, I think that's what it'll do. Its decision to release fewer movies prioritizes profit over market share."


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