What Is the Reason Hollywood Box Office Is off 70% from Last Year?

(Photo credit should read ROBYN BECK/AFP/Getty Images)

Dan Perkins Terrorism Analyst
Font Size:

There are more movie theaters in the “Flyover country” in America than on both coasts, and the American people living there are reacting to the Democrats’ attack on them over the last seven months by not going to the liberal Hollywood movies. A recent CNN story brutalized these potential moviegoers. On August 25, 2017, a Joseph Curl headline said, “CNN Claims All Trump Voters Are ‘White Supremacists by Default.”  What is the connection between Hollywood and the Democrats?  We will find out below.

I believe the reduction in moviegoers is an example of bad business decisions the Democratic Party and their Hollywood supporters have made. Furthermore, I don’t think the Democratic leadership even realizes they made bad decisions. Tell a potential customer he is inferior and see how fast he comes to you.  That is the case with many voters in Middle America. CNN’s stories are making the Democratic National Committee draw down their bank account to the point they have a negative balance, and Hollywood is unable to support them. The AP reported in a story on August 27, 2017, that said, “The Democratic National Committee barely has more cash than it does IOUs, and it is being outraised month after month by its Republican competitor.”

The Washington Free Beacon on March 25, 2017, reported, “So far this year the DNC spent $37 million on four House campaigns and lost all four.” In the contested election in the Georgia 9th, the Democrats spent $23 million. The Federal Elections Commission reported for both sides in the 2016 election cycle that the receipts for all house races were $278,855,711. The average amount spent was $641,047 per seat.  In the four special elections, the Democrats spent over $9 million per seat and lost. Based on the average cost the Democrats could have funded 53 house campaigns.

Enough about the numbers. Let’s talk about what is going on here. I want to ask you a question: if the Democratic Party were a business, would you buy stock in the company? Before you make your decision, I think you need some more facts. As a prudent investor, you would do some research about the business until you had enough information to decide to buy or not buy the company stock.

Right now the company does not control the market, but they do want to take market share away from their competitor to shift the balance of power. As a way to increase market share, they have decided to attack the leader of the other company. The company leader and his minions have nothing positive to say about him. Their motto is Attack, Attack, and Attack even more. He has to be made to be unfit and incapable of running his company, and they want him replaced, but they don’t say who would replace him; they just want him gone.

The leader of the company sees what he thinks is a perfect opportunity there is to unseat him with four contests for market share; he feels sure he can win. If he is successful, he will destroy the other side’s momentum. The leader meets with the acquisition department to find out what has been spent in the past to acquire market share. They tell him it has been about $650,000 per unit seat. He asks how much it will cost in today’s marketplace. He is satisfied they can win the four market segments up for grabs, so he asks again, how much will it cost? The acquisition department responds they can’t tell for sure, except to say probably a lot more than in the past. The reason it will cost more is that the competitor is well entrenched. The leader asks again how much? They respond $5 million to $10 million each. That’s $20 million to as much as $40 million. So he asks for a piece of paper, splits the difference and says $7.5 million vs. $650,000 is almost 12 times what it cost in the past with that information he is getting concerned.

The next step is to go to the treasurer’s office to find out the size of the bank account. The leader tells the treasurer that it could take $7.5 million per new market share unit and he wants to gain four units. The treasurer responds, “We don’t have that kind of money. We will have to start immediately to raise money, a lot of money.”

Now with this information, it’s back to your office to review the material and make your decision. The first two-quarters of the marketing plan are over and here is the result. The competitor spent over $9 million per market seat and lost all four, for a year-to-date loss of $37 million. The fund raising hasn’t gone as well as expected either, and they have a net operating loss of $3.5 million, which is growing.

Everything they have tried has failed, but they believe it is not their fault; it is those followers of the other company, those Republicans. To protect himself, the leader of the company issues a press release through CNN and in total frustration, he says, and as reported above, the reason for the failure was not our fault, but that of all of those followers who are White Supremacists by Default.  One of their biggest supporters, Hollywood, has just had the worst box office in decades. They call the company and tell them they are down 70% in box office receipts and as a result, they won’t have any extra money to support the business for a while.

Time to make your investment decision. What do you think?  The leadership of the company is out of touch with the reality of the people. They have just spent an enormous amount of money that they didn’t have, with no positive results. The entire $37 million is gone and will have to be reimbursed money from somewhere. For this company to survive, it will dramatically have to change its business plan, get new leadership, and find new sources of capital. It is most difficult to reach out to potential customers when certain news organizations have seriously alienated and try to bring them back.

I don’t see how they can make a comeback and increase the value of their stock. The price is so depressed because they overspent on the four units by at least $25 million. They have angered some of their existing customers and also alienated millions of potential new clients. I don’t think I can make any money buying this stock because I don’t see any upside in this investment. It’s all downside.

I believe that the Democratic Party is no longer viable as a political organization and is a good bet to go out of business.  So I will walk away and wait to see if something new comes along.

Dan Perkins is an author of both thrillers and Children’s books. He appears on over 1,100 radio stations.  Mr. Perkins appears regularly on international TV talk show, he is current events commentator for seven blogs, and a philanthropist with his foundation for American veterans, Songs and Stories for Soldiers, Inc. His books are available online at Amazon.com and all online booksellers.  His books can be ordered at any bookstore. More information about him, his writings, and other works are on his website: danperkins.guru.