I think the operative word is "count." I'm sure most Sid and Marty fans pretend that film didn't exist.
When it was on cable, I tried watching it, just out of my own curiosity, and I had to change the channel after the first ten minutes, I couldn't get through it. Anytime a movie has to settle for Will Ferrell instead of who they originally wanted (in this case, Jim Carrey, who probably couldn't save this movie either) is pretty much a clear sign it's doomed to fail.
And while they signed off on it, I can't imagine they were happy with how it turned out.
They do actually consider it a blemish on their reputation, but much like the Chipmunk movies, the LOTL movie suffered from too much corporate influence, which is something the Kroffts pretty much try to avoid at all costs, considering they're indie. Still, after the LOTL fiasco, they're being
very cautious about any future movie deals, but unfortunately, their caution is
costing them their movie deals: we were supposed to get a LIDSVILLE movie from DreamWorks with Conrad "Gingy" Vernon directing and Allan Menkin doing the songs, but apparently it's not going to happen; likewise, a PUFNSTUF movie's bounced from like three different studios, each wanting their own say in how the movie will turn out, rather than let Sid & Marty do it their own way, so that's not happening either. I'm just amazed that Viacom, of all people, are actually letting not only Krofft but Bagdasarian do their shows their own way.