‘Insidious Chapter 2′ Should Thank Netflix, Inc. (NFLX)

Some sequels are better off left unmade.

Yes, I’m talking to you, Grown Ups 2. Don’t think you’re getting a free pass, Speed 2: Cruise Control. If the original entry was critically panned — cough, cough, Grown Ups — there’s no reason to keep going. If a movie works under the outrageous premise that a bus will blow up if it slows down, there’s no need to whisk Sandra Bullock onto a cruise ship for a sequel to Speed.

This brings us to Insidious Chapter 2. The followup to 2011′s Insidious hits a multiplex near you next weekend, and it certainly wasn’t the kind of box-office smash that would send studios scrambling for a sequel. The supernatural horror flick about a family coping with a demon-possessed son took in just a little more than $54 million in its domestic theatrical run.

However, the movie has been well reviewed. Netflix, Inc. (NASDAQ:NFLX) users have bestowed it a rating of 3.7 stars out of five, and that’s a pretty good rating on the leading video service. The movie was available for streaming on Netflix, Inc. (NASDAQ:NFLX) until this past May, when a licensing deal ran out, and its success there probably played a major part in the decision to for FilmDistrict to go ahead with a sequel.

Nearly 1.8 million Netflix subscribers have rated the movie. That’s huge for a movie that was seen by fewer than 7 million moviegoers when it was playing on the big screen (dividing $54 million in box office receipts by the average ticket price in 2011 of $7.93). We’ve seen Netflix, Inc. (NASDAQ:NFLX) build an audience for TV shows including Mad Men and, more recently, Breaking Bad. But now we have a good example of Netflix, Inc. (NASDAQ:NFLX) streaming as an asset to a theatrical franchise if the sequel manages to beat out the original.

Source: FilmDistrict.

It also helps that supernatural movies have been storming back to life this year. Time Warner Inc (NYSE:TWX)‘s The Conjuring has raked in more than $134 million in ticket sales this summer. That’s not too shabby for a movie with a $20 million production budget. Mama‘s $71 million take earlier this year wasn’t as impressive, but it still fared better than Insidious.

Let’s hope that the producers of Insidious Chapter 2 keep this all in mind as the next few weeks play out. Thanking Netflix, Inc. (NASDAQ:NFLX)– and The Conjuring — won’t happen. The Netflix, Inc. (NASDAQ:NFLX) licensing deal went away four months ago. Time Warner Inc (NYSE:TWX)’s creepy movie is the competition. However, it would be the right thing to do.

“It will take what you love most,” is the film’s tag line, but it’s those two factors that helped bring it back.

 

The article “Insidious Chapter 2″ Had Better Thank Netflix originally appeared on Fool.com is written by Rick Munarriz.

Longtime Fool contributor Rick Munarriz owns shares of Netflix. The Motley Fool recommends and owns shares of Netflix.

Copyright © 1995 Р2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!