Already made money. Sorry you haters
Budget $175 million[5][6]
Box office $181.2 million[7]
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MovieChat Forums > Ready Player One (2018) Discussion > Already made money. Sorry you haters
Actually, no...
There is a generalization that, in order for a film to make money, you must conservatively estimate that the film needs to make between 2 to 2.5 times the production budget before it crosses into profitability.
Why?
Well, the budget listed is only the production budget and doesn't take into consideration any marketing costs for the movie. Given then heavy advertising for this movie, I'd guess that the advertising budget is very near another $100-million.
The studio does not also reap every dollar of the box office, either. The theaters that show the films take, as a general rule, 50% of the box office receipts (after all, they are in this to make money, too). Those numbers are even higher overseas, with some countries, like China, keeping almost 75% of the box office.
Taking a very conservative estimate at 2 times budget, this film will need to hit the $350 million dollar mark before it starts making a profit for the studio. I actually believe this movie will surpass that mark and will be a modest money maker for the studio... but it's not there, yet.
Thank you! But I would like to add that studios do tend to keep 90-100% of the opening weekend US and CAN. Disney has a deal where they keep 100% of the opening weekend of their top 10 releases typically Marvel movies fall under this system.
Opening 80-100%
2nd w 75%
3rd W 65%
4th W 50%
So on...
So what that means is that movies with long legs generally have a smaller percentage going to the studio. Also, the distributing company gets somewhere from 5-15% depending on the situation... In this situation, not a big deal because Warnerbros owns their own distributing company that distributes in most countries.
I know Newline had a rough time because they only distributed in the USA and had to sell rights to other territories making much less than if they had their own.. Hence why they weren't swimming rich after lord of the rings and had to defunct after Golden Compass.
I think a lot of people get caught up in the mass worldwide gross these days its only a news selling point. So and so movie made 400 Million worldwide opening weekend... Cool, but they only get 25% of China and somewhere from 25-45% in most countries. Domestic BO is the only sure number you can take away. Also, a typical rule of thumb on advertising is between 50%-100% of the production budget( Bigger the movie the bigger AD. So if a movie has a 200M budget expect an actual budget of 300-400M.
I know JJ was being interviewed about E7 and they asked him about his 500M budget and he said no no.. its nowhere near that... Then they said well after advertising marketing it is. He conceded that was probably fairly accurate.
However, don't forget about the all-important Bluray, Digital download, TV Rights, Toys sales.
A movie can make well over 100M after it's theater run.
If you want to know if a movie was successful see if a sequel is scheduled within 2 months of its release. If not then no it either lost money or didn't make enough to warrant an equal investment in future installments.
No it hasn't made money yet, but its in a good place and depending on drops may make a small profit.
shareno...
In fact, Its almost certainly not going to make any money...
RPO had a budget between 300 to 325 M...
for example, Justice League had a budget over 300 Million dollars...It was just reported WB LOST at least 60 Million on Justice League and JL made a total of 657 M...
so that Means we KNOW for sure RPO needs to make at least 120 Million dollars more than JLs 657 M to BREAK Even...
box analysts are predicting a 500 to 600 M final gross for RPO...
so lets amuse the best, lets assume RPO make 600 M WW....thats 187 million less than it needed to break even...and about a 90 Million dollar loss for WB
WB did co finance RPO, so assuming WB paid Half The Budget, and someone else paid half, thats LESSENS the Loss, instead means WB will lose about 45 M and the other party will lose 45 M....
RPO is doing decent box office wise...the problem here is the budget, It unfortunately was just too expensive to make...
anyways here the proof my facts above-
"Here’s an amazing, original ode to virtual reality and everything that’s Spielberg based on Ernest Cline’s bestselling YA novel, and for weeks tracking had this pic in the scary range of $38M-$42M over 4-days which would be a truly atrocious start for this movie which cost all in between production and P&A $300M-$325M (Village Roadshow is co-shouldering production costs)."
From Deadline
^Proof RPO cost over 300 M
"Gitesh Pandya
@GiteshPandya
1h1 hour ago
Massive $61.7M opening wknd for #ReadyPlayerOne in China - biggest ever for WB there. $128M total intl opening wknd putting global debut at huge $181.2M. Germany and Japan still to open. $500-600M worldwide run possible."
^box office analyst predicting RPOs final gross.
"Now Ready Player One cost about the same amount of money as Justice League and that pic with a $657.9M global haul ($106M of that coming from China) didn’t profit with what our experts say was a $60M loss. However, there’s more mojo here with Ready Player One with its shiny reviews and exit polls, and that will help in giving this VR pic extra lives. Our finance sources want to see how international shakes out before calling game over on Ready Player One; its running tally through three days WW is $109M. In regards to those low ball estimates by tracking, distribution execs tell us that the abundance of male-dominated fare (i.e. Tomb Raider, Pacific Rim: Uprising), plus Black Panther‘s hold, pushed forecasts down."
^ From Deadline
Proof JL lost 60 M
I get that every movie has FANS and you may want the movie to do good and be a success...
but saying RPO already made its money back after 5 days and 181 M is at best DELUSIONAL and most likely a completely made a lie....
RPO has good WOM, Good Reviews, had a decent opening...Give it time, It could surprise and have a really healthy box office, It may in time break even(IMO probably not) but its possible...but saying it broke even right now its truly the act of A CHILD or an extremely angry and Jealous adult
Another HUGE problem for this film making profit...is Spielberg himself
Hes such a ICONIC and powerful director, The deals and contracts he gets to makes these films are insane...
The Last I read, Spielberg gets anywhere from 10 to 20% of Profits regardless if the film break even or not...thats basically mean means every dollar earned Spielberg gets 10 to 20% of it...which then means the film has to make 10 to 20% more than it should have to to break even!
1 good thing is, there are no huge name cast, no back end payments, but Spielberg himself is the big one here
For example one reason Justice League Lost so much money was WB made Awful Deals....They were giving Upfront and HUGE Back end Money to Affleck, Gadot, Cavill and Even Snyder!
3 of those 4 simply didnt deserve back end money
WB must of had NO Confidence in Gadot, because they only signed her to a 3 picture Deal(BvS, WW and JL)...Once WW hit big, WB then had to open the bank to resign Gadot for WW2 and future films which aloud Gadot to negotiate Back end on JL...its worth noting WB made the same mistake with Patty Jenkins, they didnt sign Jenkins to a mandatory Sequel, so once WW hit Big, they had to open the bank and make her the highest paid female director ever...these are just terrible moves by WB, WW2 now is going to almost certainly make a Lot less profit...given that WB is going to be giving BOTH Gadot and Jenkins 10 to 20 Million Upfront Plus Huge Back end deals...
example it was just revealed on Deadline Wonder Woman made 252 Million in Profit for WB(Both Jenkins and Gadot were on Minimum contract With no back end and WW was made on a 150 M Budget) thats means WW grossed 820 Million + and made 252 M in Profit...
yet Now with WW2 , WB will almost certainly up WW2s to 200 M, and Given Gadot and Jenkins are getting 10 to 20 Million upfront, that means WB will be in WW2 between 220 to 240 M...If WW2 makes the same amount as WW1, WB is going to make about 50 M LESS is Profit...which would be about 200 M in Profit....then you have to shell out the Backend to Gadot and Jenkins, If Jenkins and Gadot got 10% back end(Maybe More)....
thats another 20 Million each gone...WBs profit has now gone from 252 Million down to 150 M if Both WW2 and WW1 made the exact same amount...
Meanwhile Disney/Marvel Studios, Sign their actors to 6 picture contracts and Always sign a mandatory sequel contracts for directors....this is just another HUGE reason why WBs DCEU is failing, They literally dont have any idea how to run it...
samething happened with Suicide Squad...BOTH Suicide Squad and GOTG made almost the same amount of money...yet GOTG made way more Profit because WB went with HUGE A List stars like Smith,Robbie and Leto that they had to pay huge upfront and back end money to..Meanwhile Marvel Studios went with Unknown actors and actors they could get for Minimum salaries...
sorry somehow that turned into an Anti-DCEU rant, but My point was I was trying to explain back end money...
Spielberg Will get HUGE back end which will result in the film needing to make even more to break even, especially if Spielberg has a "first dollar" deal, which again means He gets 10 to 20% of every cent the movie makes regardless if it makes a profit
From the numbers being bounced around (including the ones quoted by you) it appears that RP1 had a total budget of approx. $300-325M including marketing, which is in the ballpark of JLs production budget without marketing included.
If that is the case then RP1 will make a profit if it makes it to around $450M worldwide which doesn't seem too far fetched. It won't be a massive box office success but it shouldn't lose them any money either.
but your forgetting about Spielberg contract....which he almost always has First Dollar gross where he gets anywhere from 10 to 20% of whatever the film makes regardless if it profits or not...
If His contract is 10%, thats another 50 Million more the film needs to make to break even, If it 20% thats another 100 M
I still gotta to believe the break even point is more than 450 to 550 M too...
again JL just made 657 M and WB lost 60 Million on it...
also worth noting the goal isnt to break even...You dont spend upwards of 300M to simply make no money....you spend that much money on a film because you believe that film can make A HUGE profit....
but I'm not biased or crazy...Its clear Ready Player One is doing decent, if the break even point is between 450 to 550 M, I do believe it will hit that, I see RPOs total between 550 to 600M...
but as I said, Thats not going to start a franchise, Breaking even isnt going result in WB going forward with A RPO sequel or sequels....literally 95% of the time, when a studio spend 100 million or more on a blockbuster and that film ONLY break even or makes a small profit, They dont go forward With a sequel.
IMO I think RPO is probably gonna lose money, I suspect the break even point is higher than 600 M...but If I'm wrong, and its between 450 to 550 M...I still think RPO is gonna just break even, and then maybe make a 50 million or so profit it then next few years from home media slaes...
either I cant imagine WB or anyone else involved being to happy
Too much speculation involved to say anything for certain (not that there's anything wrong with speculating mind you! It's one of the reasons we're here after all).
I agree that it looks unlikely to be a massive success and you could well be right in that it won't spawn a franchise. I don't really care to be honest. Movie franchises are almost always crap anyway (with a handful of notable exceptions).
Even if it just breaks even or makes a modest profit I don't think Spielberg will have too much trouble getting projects Greenlit in the future. He has too much goodwill banked already for that to happen. As long as he brings out decent movies I'm happy regardless of whether it's Ready Player Two or something completely different.
And as for WB... I'm sure RP1 is the least of their problems these days. They should be more worried about what the hell they're going to do with the DCEU.
Where is the evidence of a 300M+ production budget for RPO?? Most SS movies are reasonably priced.
Google lists it at 175M. I was going to guess after seeing it at 200M. Maybe a total budget including advertising is 300M?
Where is the evidence of a 300M+ production budget for RPO?? Most SS movies are reasonably priced.
^^^
"Here’s an amazing, original ode to virtual reality and everything that’s Spielberg based on Ernest Cline’s bestselling YA novel, and for weeks tracking had this pic in the scary range of $38M-$42M over 4-days which would be a truly atrocious start for this movie which cost all in between production and P&A $300M-$325M (Village Roadshow is co-shouldering production costs)."
^direct quote from From Deadline
Okay but that's including the marketing(P&A). Most movies only report their production budget. The production budget alone is being reported at 175M which is very reasonable. Just league was 300M+(never truly stated) on production alone including massive reshoots from director switch. Then another 100M+ on P&A. That's why it would have needed 800M-1B to be profitable.
RPO should be able to get north of 600M worldwide and if you take the 50% rule of thumb that's 300M and they nearly if not break even on all costs including their marketing campaign.
Then everything else forever is gravy. Sounds good to me. Remember movies can make money forever, wizard of OZ is still pumping money. RPO could easily make 10-50M per year for the next 5-10 years if not 20. Warner Bros is drawing cash every day from movies released throughout their lifetime.
We will see what kind of legs RPO has. I feel like it's getting decent word of mouth so far.
Costs-
Production Budget:175M Marketing(P&A) Budget: 150M Total: 325M
Revenue-
Worldwide Gross: 600M (50% take rule of thumb) 300M
First Run TV Rights 20M Est
DVD/bluray 57M Est (Based on GOTG2) 50% take 27.5M
Digial Download 20M Est 80% Take 16M
REDBox/VOD/other rental 20M Est 50% take 10M
Toys and Merch 50M+? 25% take 12M
Total Rev.: 385.5M
First Year Profit Based On Conservative Estimation: 60.5M
Steven Speilberg 25% cut: 15.1M not bad considering he gets 20-30M upfront which is included in the budget.
Again that's it's first year of release only.
Certainly, RPO is not a breakout success story but even by conservative measures, it's not going to lose money.
Unquestionably it did much better than expected in its opening weekend. Reportedly it was Spielberg’s best opening in well over a decade.
Now will it continue to reign? Looks like some don’t expect it to or hope it doesn’t. All I can say is, it’ll be cool if it does make a good profit by the end of its run.