Quoted from fosaisu:Are you really arguing with a straight face that Disney produced a movie that results in zero profit to their shareholders with $1.2b in global box office? Who would ever greenlight that?
1) I did the math, was something not clear? In all fairness though the theater run is not done but Forbes projects it will struggle to break 1.4 billion. Forbes is also not the only source who is projecting this. Fairly easy to look up the box office returns on BoxOfficeMojo and project the numbers to some degree.
2) They were projecting to gross $2 billion, someone will have to explain where the missing $800 million went.
3) They will make a profit, the question is how much? There is a lot of costs to be covered in a SW production.
Example The Force Awakens: Production $250 million, Advertising $250 million, residuals $250 million, Studio overhead $30 million.
So right there is $780 million in costs before The Force Awakens was shown on a single screen. One can assume TLJ won't be far from those numbers.
Toys, Disc and download sales, books, clothing, shampoo and other consumer goods will of course fatten up the bottom line but a Star Wars movie is pretty much expected to stand well on its own, the rest is tasty, tasty gravy.
Quoted from fosaisu:
As for your profit/cost numbers, none of us appear to really know what we're talking about, but a guy earlier said Disney's actually getting 65% of domestic box office for TLJ through strong-arm deals with theaters, which would tack $100m onto your domestic take number.
As I pointed out, the number varies from 30-60% depending on how long the run is. It doesn't stay at 65% and some theaters even declined to show the movie, which I will assume is a fairly small number.
Quoted from fosaisu:
It seems plausible that Disney negotiated better deals in at least some foreign markets too.
Feel free to cite a source, Star Wars is not that great a draw in some markets.
Losing to a local Chinese comedy in China has to be a hell of a shot in the nuts to Disney.
Quoted from fosaisu:
As for marketing costs, do you really think they spend as much on a SW flick as the average blockbuster, when they've got all that free advertising from their licensees (which they're being paid for to boot)? I've seen way more car and video game ads featuring Star Wars than I have TLJ ads this winter.
Disney is notorious for flooding the zone in marketing, the number of $250 million for TFA for example is reported to be accurate.
Quoted from fosaisu:
Disney will ultimately turn a sizeable profit on TLJ (box office plus merchandising). It is unavoidable.
It is.. till it isn't.
The Forbes article had examples of several franchises that were profitable till one or two movies ran them into the ground.
Lets face it, its is a rare movie franchise that continues to make money. They all die sooner or later with the profit trailing off each entry till it becomes unprofitable to turn out another movie.
The last Terminator movie was actually profitable.. But the studio still killed the new Terminator trilogy it was to launch as it was not profitable enough.
Quoted from fosaisu:
It's just odd to see people bending over backward to argue that Disney won't get paid on this venture.
No one is arguing that, unless I missed a post or two.
People are arguing that the movie was not so good and this is showing up on the bottom line.
Disney projected to rake in 2 billion in ticket sales and that doesn't look like it is going to happen.