‘Gravity’ Rockets to No. 1 at Box Office; A staggering 80% of the studio’s estimate of $55.6 million in opening-weekend domestic ticket sales came from locations playing “Gravity” in 3-D

Updated October 6, 2013, 7:18 p.m. ET

‘Gravity’ Rockets to No. 1 at Box Office

3-D Sci-Fi Thriller Draws $55.5 Million in Opening Weekend

BEN FRITZ

MK-CG849_BOXOFF_G_20131006175258

Science-fiction thriller “Gravity” set an October box-office record this weekend and showed that audiences still will choose 3-D screenings for movies they believe are worth the higher price. A staggering 80% of the studio’s estimate of $55.6 million in opening-weekend domestic ticket sales came from locations playing “Gravity” in 3-D. Critics generally raved about the film, which stars Sandra Bullock and George Clooney, and recommended the 3-D version. The 3-D sales rate was higher than it was for the opening weekends of such hits as “Avatar,” “Life of Pi” and “Alice in Wonderland.”

The success of “Gravity” came in a year when audiences often have opted out of paying more to see images pop from the screen. Family pictures such as “Turbo” and “Despicable Me 2” generated less than 30% of their box-office receipts from 3-D screenings this year.

“Eighty percent is mind boggling, given that the domestic market has settled in with a much lower ratio on big movies in recent times,” said Dan Fellman, the president of domestic distribution for Time Warner Inc.’s TWX +1.79% Warner Bros., which released “Gravity.”

Hollywood studios still are likely to cut back on 3-D versions, in light of the dismal showings this year. But the weekend will provide ammunition for filmmakers who, like “Gravity” director Alfonso Cuarón, can argue that the technology is integral to their work and part of a groundbreaking visual accomplishment.

The weekend’s results also could boost the confidence of studios that want to release big-budget movies in the early fall. Such movies typically are released in the summer, around the holidays or in March, while autumn generally has been the time for inexpensive dramas and genre movies. “Gravity” cost about $105 million to produce.

Digital and large-format screens from IMAX Corp. also did well with “Gravity,” accounting for 20% of receipts, though such theaters account for just 9% of the movie’s screens.

The previous record holder for the biggest ever October opening was the low-budget horror sequel “Paranormal Activity 3,” with $52.6 million in 2011.

Though “Gravity” was a risky project—unlike most $100 million-plus movies, it has an original story and a female protagonist—it appears poised to be a financial success. Mr. Fellman said that based on exit-poll data he expected word of mouth to be strong, which should keep ticket sales high in coming weeks.

“We’re already seeing repeat business,” he said.

“Gravity” opened in 27 markets overseas and took in a healthy $27.4 million, with particularly strong results in Russia, Germany and Australia.

The weekend’s other new film, the poker movie “Runner Runner,” folded in “Gravity’s” wake, opening in third place to a weak $7.6 million.

It was a disappointment for financier New Regency Productions and distributor Twentieth Century Fox, which is owned by 21st Century Fox Inc. FOXA +1.51% The movie, with Justin Timberlake and Ben Affleck, cost about $30 million to make and its opening was the lowest for Mr. Affleck since 2006. (Fox until June was part of the same company as The Wall Street Journal.)

“Runner Runner” did better internationally, taking in $23.7 million in 52 foreign markets since opening last week.

“Cloudy With a Chance of Meatballs 2” was in second place for the weekend, at $21.5 million. The Sony Corp. SNE -0.19% movie was released the previous weekend.

Unknown's avatarAbout bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a comment