MovieChat Forums > Aladdin (2019) Discussion > 183 million production budget!

183 million production budget!


Oh my...it just never stops for Disney.

It looks like a good chunk of Endgame's profits will have to be swallowed up by the losses on this as well as the over 100 million loss on Dumbo.

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And mary poppins returns 😮

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and Ralph Breaks the Internet...and The Nutcracker...and Christopher Robin...lol.

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Ralph made over half a billion, is that a flop? How the hell did that cost $175 mil to make though! 🤔

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It lost money. Not as much as the others but still lost money.

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Films need to make more than three times their budget to make a profit now? When did this happen?

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Nope.

175 million production budget + 100 million standard P&A cost= 275 million total cost.

Breakeven= around 550 million worldwide.

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$100 million sounds like too much to be the standard advertising budget.

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For expensive blockbusters it's average...sometimes much higher.

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I can agree with that. Though I do think they get a bit stupid with it. There's no reason to spend $200 million marketing Endgame when everyone and their mother will know it is out in theaters. I could also make that argument for whenever Disney releases a sequel or a live-action remake. But when something like Ready Player One comes out the studios will need to get the message out.

I'd be willing to bet Disney could cut their ad budgets in half and still get roughly the same returns.

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Totally agree. Disney seems to overspend on everything...unnessarily.

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But you are assuming they always do. We don't know that as fact. Its all based on suspicion. We know it happens when the big tentpole events come out but we don't know it for things like Ralph Breaks the Internet. We have to go on assumption. So when you say Disney overspends on "everything" you are really just pretending to know that. For all you know they could've spent less on marketing for Ralph 2 than what was spent on Ready Player One.

Also I'd just like to point out that Warner Bros has had the worst track record with its receipts. They were counting certain Harry Potter movies as net losses even though they made over $900 million. I've never seen that with any other studio.

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Ralph was definitely a "tentpole" release. It was their Thanksgiving holiday release!

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Tentpole for you maybe but not for Disney. Ralph 2 was an average release for Disney at best. It didn't have the importance behind it that Incredibles 2 had. I agree though that Disney is not always the well-oiled machine that many claim it is. They begin projects here and there and release them based tentatively on when they are ready.

I actually take back what I said about Endgame spending $200 mill on marketing. A lot of that is gained back with toys. Some of which could equal their take in the box office. So really it all depends on what type of tentpole movie we are talking about. Its possible even Solo made its money back from toys since of how marketable that stuff is.

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Disney seems to overspend on everything...unnessarily.


I wouldn't say that. Mickey's huge coke habit is well known and damn expensive. Ha-haaaaaaaaaaaaa!

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Can you please provide evidence of these costs?

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550 is more than 3 times 175, so you should change that "nope" to a "yep".

The 2 times production budget rule of thumb always took marketing into account. For a start, studios get about 60% of US BO receipts and 55% of overseas, not 50%. But there are other sources of revenue like advertising deals and bluray sales as well as merchandising, which is why you can write the marketing budget off. So the rule of thumb is 2 times production budget to break even I guess, which means a 175m film will make profit at about 400m.

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Just...wrong.

Laughably wrong.

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55% from overseas markets, huh?

And we're including hypothetical, future home media revenue to say a film has broken even in it's theatrical window?

Oooookaaaaay.

Marketing costs are already factored in relative to the 2x production cost rule?

Geez...I've never seen a post filled with just so much...wrong.

LOL

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The problem is each studio makes their own deals that can change from movie to movie. There is no general rule of thumb that applies to all. Sometimes it really could be as high as 60% in the US. Overseas you're probably looking at a max around 45% though. But whenever someone posts these box office threads saying such and such lost or gained money there's a 99% chance they are talking out of their rear.

Honestly nobody here knows the details. These threads are always silly.

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Yes, the 2 x production cost rule of thumb is production cost without marketing. But you get to use hypothetical marketing costs pulled out of your ass, but I can't use hypothetical sponsorship deals and bluray sales? Interesting.

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Because we're talking about the theatrical run. We can spend all day going down rabbit holes pertaining to post theatrical revenue and say all kinds of films EVENTUALLY made their money back...5...10 years down the line.

As far as marketing costs, it's widely accepted that the global P&A costs for expensive blockbusters is around 100 million...rarely less...quite often more. I didn't just arbitrarily come up with that number

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Well hopefully Aladdin does lose money and Disney will stop pumping out these crap soulless remakes of timeless classics.

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We'll see how it holds. I found it to be an enjoyable family film. Much better than an Illumination animated film, for instance.

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Nope.

175 million production budget + 100 million standard P&A cost= 275 million total cost.

Breakeven= around 550 million worldwide.

^^^

congrats

You once again FORGOT your OWN trolling....

You are ON RECORD bragging about abother film that had a HIGHER Production and HIGHER marketing campaign and You defended it for MONTHS claiming it was a Monster hit for Making nearly the same amount as your claiming Aladdins break even point is

bottom line

Unless you are willing to GO BACK and say you were wrong about that "That" movie being a Huge hit....You can not now claim Aladdin's Break in Point is 550 Million and Is NOT A HUGE Hit...

this is a classic example of you FAKE trolling....

You literally Have argued for MONTHS that another film that cost More than Aladdin and made nearly the same amount is a huge hit....but Now You are using the exact same argument to claim A Disney film is not a hit.....

lol You are FAKE trolling....You dont actually believe what you are saying




PS....


Putting aside that you are fake trolling for a moment

Why even give a break even point?

I mean I understand why I would...Or why other posters would, I get the purpose of it....

But I asking Specifically why do you give a break even point?

you Proven That Break Even Points DONT Matter to you....You've set break even points for 2 other films, That HIT that Mark, The Literally Hit YOUR OWN break even point and It did not matter to you, The second those films hit YOUR OWN Mark where You claimed the film needed to be to be profitable, You didnt acknowledge it...Instead you MOVED the goal posts and still claimed the films were FLOPS...

so again I ask why do you set a break even point, in your case its Pointless....If the film hits YOUR OWN break even point, You'll just Move the goal posts to a new Goal so you can continue trolling

....

PSS

you realize you've ALREADY lost NO Matter what happens now right?

lol you made this thread based on 1 CLAIM

that Disney was going to LOSE Profit from Endgame to cover loses on Aladdin

this thread wasnt if Aladdin was going to be a Huge hit, You Made this thread claiming Aladdin was going to be A HUGE Flop and cut into "A Good Chunk" of Endgames profits

lol You've already Lost and completely given that up and now are Moving The Goal Posts to...."ok so it opened Huge, Looks to be a hit but lets see how much profit it makes with a break even point of 550"

lol You already lost.

Aladdin could Literally Make exactly 550 M and not make a Cent in profit and you've still LOST...

lol when you made this thread, 2 things were clear.

1. You at no point actually thought about what "A Good Chunk" means because as I already proved in a another reply in this thread, if we add up all Of The Flops Disney has had, It wont even cut into 10% of Endgames profits, If we then add Captain Marvel's Profiit, It less than 5%.

clearly You had absolutely NO Clue what "A Good Chunk" means

2. by saying "A Good Chunk"....that Clearly meant you were expecting Aladdin To Lose Disney Hundreds of Millions....because its ease to prove Endgame Will Net Disney around 700 M in Profit just from Its Theatrical run.....Therefor, "A Good Chunk" of that would have to be something like over 30%....

so what is 25,30 and 35% of 700 Million?....210 Million

so that Means you were expecting Disney to Lose roughly 200 Million on Aladdin when you made this thread and claimed It was going to be another flop that cost Disney "A Good Chunk" of Endgames Profit

and again I repeat...YOU'VE ALREADY lost.

Your now already at the point where you basically conceding its going to break even or get close to breaking even....Meaning the original purpose of this thread where you thought Aladdin was going to flop so bad it was going to cost Disney "A Good Chunk" of Endgames profit has Failed and Failed in Spectacular fashion so much so you've already moved the goal posts and conceded...

lol as usual...Epic fail




PSSS still avoiding The Captain Marvel Board Like a Plague?

still havent accepted your greatest Failure of these boards huh?

sure Disney now has the highest grossing Female Superhero Movie of all time Domestically beating Wonder Woman, Sure you claimed and guaranteed this Could not happen over 30 times, sure you guaranteed as much as we "Huff and Buff CM will never top WW domestically"...sure these are ALL TIME embarrassing fails...but are you really going to sit in SHAME and silence forever and never again return to the CM board....thats not the queen I once knew....but its entirely possible This particular FAIL BROKE YOU and you truly cant face this particular fail because it bother you too much....

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It looks like a good chunk of Endgame's profits will have to be swallowed up by the losses on this as well as the over 100 million loss on Dumbo.

and Ralph Breaks the Internet...and The Nutcracker...and Christopher Robin...lol.

^

Dont have a lot of time but just thought I would swoop in and point out how absurd your trolling is

first, congrats you've spent 3 months trolling on Aladdin and Its Officially Heading for a HUGE 100 M+ opening Weekend and Will easily be a Profitable....Epic fail

but lets get to your other claims...

Ralph easily Made profit......Truly have no clue why you listed that, You've even DEFENDED Movies with nearly the EXACT same box office and even HIGHER Production budgets and called them Massive HITS....again this is clearly You either forgetting your PAST tolling...or your simply FAKE Trolling and dont believe what you are saying

Next We get To The Nutcracker,CR and Dumbo........

The Nutcracker lost Maybe 100 Million.

Christopher Robin HILARIOUSLY Met your OWN Break Even Point, yet you still "Move the goal posts" and shamelessly claim its a flop....

Its probably broke even, But will certainly break even with BR,sales,Streaming and TV Revenue...

that leaves DUMBO...Which I must admit I'm not entirely sure how to Judge this one because Its clearly a disappointment, but weirdly has not crawled to the 350 M WW mark.

now this is weird because, If were just talking Production Budget then Disney has Broken Even...But as you know there is also Marketing, The question for DUMBO now because how much did Disney Spent on Marketing, and how much of that Marketing was ENTIRELY on Them.

I would think Disney would spent somewhere between 50 to 80 Million in Marketing on a film like this...but theres no telling how much of that was in Actually Money and established Partnerships...

So really, Theres zero chance Disney is Losing over 100 Million on Dumbo...

the actual loses on Dumbo is going to come down entirely to how much they spent on Marketing.....To be safe I would say , Loses are probably going to be between 40 to 60 Million...

but thats just on its Theatrical run...Luckily Disney Will be able to cut those loses with Money from BR sales,Dvd sales and TV Revenue ...which will cut total loses to probably 20 to 30 Million...

So Lets recap...

Aladdin...easily going to be Profitable
Wreck It Ralph--absolutely broke even, and EVEN by your own TROLLING made a profit
The Nutcracker--100 M+ Lose
Christopher Robin---MET YOUR OWN Break Even point, probably broke even on theatrical gross but Certainly will break even or make a small profit when you add in Post Theatrical revenue
Dumbo-most likely 20 to 30 Million in Loses after Theatrical and Post Theatrical Groses..

So Were now at a TOTAL of 120 to 130 M+ in Loses for Disney....and of course thats not counting the Profit Disney could potential make on Aladdin and made on WIR and possibly CR....

the reason I gave these details wasnt really to go down every movie and show your were wrong, I must admit, thats just a BONUS...

The real reason I did this was for 1 statement you made and that statement was.

" It looks like a good chunk of Endgame's profits will have to be swallowed up by the losses on this as well as the over 100 million loss on Dumbo. "

THe only possible way to Properly shows how completely absurd and DUMB this ^ statement is....Is to define "The Losses"....and See If Its in fact a "Good Chunk"

lol this was a classic trolling technique that Trolls use and You've used quite often.

You know you cant troll on Avengers Endgame, You know Its going to make Insane profit, You know theres nothing you can possibly say to troll on that films box office or Profit, so in a desperate attempt to troll you, You try to claim "Oh No The Profit from Endgame is going to have to cover the loses of other films"

you tried the same exact thing With Black Panther and failed on an Epic level...lol you remember when you tried for 3 weeks to troll on BP and finally gave up but Then 2 weeks later came back with the "too bad A Wrinkle in Time is going to devour most of Black Panther's profit"

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and then remember how I Hilariously took your exact same Trolling statement and turned it on you by saying well "Too Bad WB's 5 massive flops from 2017 are going to devour ALL of Wonder Woman's Profits"

lol Your like a broken record, You just do the same things over and over again...lol You went has far as you could possible go with Black Panther and Endgame, When you finally gave up, you then come back with the same exact "Well so what the movies were HUGE massive hits, the profits they made are going to be lost because of flops"

lol and It BOTH cases I proved you wrong...It Black Panthers case you tried to Claim MOST of BPs 500 M profit would be LOST.....I ended it up proving Disney would at Most lose less than 10%....

and Now in Endgame case, Lets figure it up...

Endgame is set to make about 700 M+ in Profit from its Theatrical run...then we add another 200 to 300 Million from Post Theatrical revenue...and dear god I dont even want to consider the money made from Merchandising, I cant even begin to imagine the money they are making from Toys, character statues,clothes(The Endgame Quantum realm jackets and outfits are freaking everywhere) and holy shit, Infinity Gauntlets and especially the new Nano Stark Guantlet are just everywhere, I literally cant get on facebook Without seeing this stuff

Bottom Line, were talking 700 M + from Theatrical grosses

200 to 300 Million + from BR,DVD,Digital and TV revenue

and Honestly Literally UNKNOWN from Merchanting...possible like 500 M+(Theres an incredible article detailing how Marvel Studios/Disney Is making More Money and Profit from Spider-Man Merchandise from The 2 Avengers film and 1 SOLO then Sony did on Homecoming's box office)...

so lets just throw out the Merchandise because I truly cant put a number on it, again Its probably over 500 M....but who knows

Endgame Will net near 1 Billion in Profit when its all said and done

we've established Disney's loses on The films you list are at most 120 to 130 M....but probably less when you count the profit Disney will make from Aladdin and CR and Maybe even WIR

so are we are again....That "Good Chunk" you are trolling about...ends up being 10% Or LESS.

when you then throw in the Profit made by Captain Marvel which is going to be between 350 to 400 Million + just on Theatrical Grosses

That "Good Chunk" because A HUGE, Whooping Less than 5% of Endgame and CMs profit...

again, I know these are "end of the road" trolling tactics for you...You only go to them when you gave up and can no longer troll on the films box office anymore....But You tried this with BP and it failed Miserable and for some reason you tried it again with Endgame and it just failed even worse

you need to do research and most importantly Think about YOUR PAST trolling before trying to do these things....

2 of the 4 films you tried to mention as FLOPS directly Went against your past trolling and Own Statements....

Christopher Robin met your own break even point....There is no moving the goal posts, for you its not an option to claim its a Flop....the absolute best or worst you can do is claim it Broke even

Wreck it Ralph has nearly the same Box office and A SMALLER production budget as another film that YOU CLAIMED is a Huge HIt and Very Profitable(PLEASE, Please ask what that film is)

for you, you cant not claim WIR is a Flop, For you, according to your Own standards It can ONLY be a HIT and Made a Profit...

These are things you need to think about before trolling...


To further add insult to injury....Disney Is currently still the #1 studio this year Heading for Record revenue and Profit for 7th time in 8 years...

its not an exaggeration to say....The Flops that You have spent Months and Will continue to spend months trolling on Will literally Not even make up 5% in Loses for Disney...

The Profit Made froEndgame,Captain Marvel, Aladdin, Lion King, Toy Story 4,Frozen 2 and Star Wars is truly going to be Historic and never before seen....

you are in for a truly horrific year....

as of right now, The Most you can possible say Disney has lost is 120 to 130 Million....

lol Endgame will Net 700 M+
Captain Marvel netted 350 M+
Lion King could net 500 M+
Toy Story 4 Could net 400 M+
Frozen could net 400 M+
Star Wars could bet anything between 200 to 400 M

were talking Disney Breaking every record there is this year....from highest domestic box office from a studio, Total Box office and Most Profit....

Disney is going to make easily over 2.3 Billion in Profit from thier films this year.....lol putting that 130 M in Loses your clinging to at LESS than 4%...

congrats...at the end of the day....Your going to spend an entire year trolling on something that equals 4% or less.....

Epic fail....




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It appears you had more time than you thought.

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LMAOOOOOOOOOOOO

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IKR?

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Its definitely on the expensive side but watching the movie you can see why.

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I don't know if any of Disney's movies are ever loses. They all must clean up on the home release market, even if it takes ten years.

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How much has Aladdin made how much has it lost ? How come you didn't say things like this on the shazam board ?

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You think Hollywood producers would concentrate a little less on spending exorbitant sums and a little more on producing high quality movies (like Avengers: Endgame).

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Warner Bros. and Universal(especially) tend to keep their budgets in check...that's why you rarely see them produce a money-loser.

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Are you happy with yourself now that you made billybrown write a 4 page post?

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Translation: Movie-going audences fork over the same cash to WB and Universal for a lesser product than the one Disney provides. Yay?

It's like complaining about a car because it has more features but costs the same price.

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AT&T(WB) and Comcast(Universal) have the same amount of resources as Disney, lol...just smarter and more efficient with them.

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Aladdin looks expensive though. In fact all of the live-action remakes look expensive. I'm still amazed how they got Jungle Book under $200 million. Do you really think Universal was being efficient by spending $230-$250 million on Fate of the Furious? Disney built the entire world of Wakanda for less. And every time Disney does a remake it adds to their theme-park attendance. Not to mention adding content to their streaming service(s).

I'm still waiting for a solid argument that WB or Universal makes more money overall from their movies than Disney does from their own. And I'm sure I'll be waiting awhile.

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Disney releases less films than WB yet makes more money, this is fact, yet you constantly harp on about Disney losing money ? perhaps you should jump on a WB board and be critical of some of there money losers which is more than Disney it would seem, WB released 22 movies in 2018, Disney 10, WB made 6 billion, Disney 7 billion , you lose queen , as usual.

https://www.the-numbers.com/movies/distributor/Walt-Disney#tab=year

https://m.the-numbers.com/movies/distributor/Warner-Bros

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WB didn't release ONE MONEY-LOSER in 2018...Disney released FIVE.

Three of which lost a 100 million apiece.

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Disney made more money even though they released less films, did you bother to read my post above? Show me evidence of these losses.

Accept it Queen , Disney is more profitable than your precious WB, the facts speak for themselves, you lose, again.

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Even if they had $500M in losses on those five movies, they'd still make 3x as much $$ as WB in 2018 ...that's gotta hurt, huh?

And they'll make 5x as much as WB in 2019.

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"WB didn't release ONE MONEY-LOSER in 2018...Disney released FIVE."

The 15:17 to Paris
Tomb Raider
Smallfoot

And if we want to get real specific we can include 12 Strong, Life of the Party and Tag as they were distributed by WB.

So thats six money-losers distributed and/or co-produced by WB. How many money-losers did Disney distribute and or co-produce?

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[–] ultravioletx (2238) 3 months ago
"WB didn't release ONE MONEY-LOSER in 2018...Disney released FIVE."

The 15:17 to Paris
Tomb Raider
Smallfoot

And if we want to get real specific we can include 12 Strong, Life of the Party and Tag as they were distributed by WB.

So that's six money-losers distributed and/or co-produced by WB. How many money-losers did Disney distribute and or co-produce?
Just wondering, as it wasn't a rhetorical question and only requiring a short response, but did you ever get an answer from QueenFanUsa? 🤣😂🤣

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Nah. Never did get a reply on this topic.

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I find it funny when people like you and billbrown debate about money that neither of you will ever see. Box office results mean nothing quit debating about them.

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Is it even a debate when Queen says ridiculously false things and Bill fires back with facts? What I find funny is the actual exchanges-- Queen is so sincere in his trolling you sometimes wonder if he knows he's trolling, all the while knowing full well he does, and Bill has found the perfect outlet for his Asperger-induced box office trainspotting. They are true soulmates, and it feels magical at times knowing they found one another.

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You never give up, do you? Dumbo has already more than broken even and is making money, and will make far more once it's out of theaters. Aladdin will do likewise. Get a new schtick already.

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"Dumbo has already more than broken even and is making money"

The sad thing is that you don't realize how you just discredited yourself with this statement when it comes to discussing box-office, budgets, marketing and profitability.

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The rule of thumb is that a film must make double its budget to break even. That accounts for marketing costs as well as the portion of ticket sales that go to theaters. It's certain that Disney spent less on advertising Dumbo than that, through partnerships, promotions, ownership of ABC, ESPN, etc., as well as the fact that it was a very minimal campaign, but for your sake we'll go with double. It's already past double, and in the black.

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smh

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Your "rule of thumb" has long been discarded by industry observers.

The only way that could work is if the production cost INCLUDED marketing and distribution costs.

They. Do. Not.

That 170 million production budget is just that. Production budget. Regardless if Disney owns ABC or ESPN and airs ads on them. You know they have to advertise on competing networks and AROUND THE WORLD as well right? Where do those expenses magically disappear?

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It was a "minimal campaign"?

How so? It was heavily advertised on tv and the internet for weeks prior to it's opening. I saw MANY tv spots for it...the same as any other would-be blockbuster. You think Disney spent 170 million on production but closed their wallet for promotion to let people know it was coming out? How stupid is that?

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I saw very little advertising for it, and it almost seemed to slip in under the radar. It certainly didn't have the omnipresent campaign that Shazam did, or the new Godzilla has. But even if it had a campaign of similar size, it would be of a similar cost. The assumption that every film has a marketing budget equal to its production budget is naive. While we aren't privvy to the advertising budgets of most films, we know that much of the modern advertising is now being done online, much of it for free, and when paid at a cost that's a fraction of traditional TV advertising.

So how much was spent marketing Dumbo? $50 million? $100 million? Likely somewhere in between, but we don't know. No matter how much was spent, when you subtract its production cost from its revenue, you're left with $180 million, more than enough to cover even the steepest of advertising costs with room to spare. And if you're still convinced it hasn't broken even yet, even someone as truth-adverse as you has it that it will soon be profitable-- its remaining theatrical run, the money it makes on DVD and BluRay sales, what it makes from rentals, income it generates from streaming, plus all the various marketing tie-ins and merchandising-- and it will end up being quite profitable at that. As will Aladdin.

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"When you subtract it's production cost from it's revenue you are left with 180 million."

LOL

So you're saying that of the 349 million it has made worldwide, Disney received every penny of it? Are you forgetting a little thing called the exhibitors and their half of that revenue. In fact, the majority of it's gross came from overseas where Disney gets less than half of that revenue.

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Prove it , show us hard facts, show us the profit and loss for this movie?

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Here's a tip.

Go to boxofficemojo and click on Dumbo and you'll see it's production budget and it's worldwide gross and see if you can figure it out.

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The fact remains that this is all pure speculation on your part. All we know is that the film has been estimated to have cost $170 million, and thus far it has brought in $349 million at the box office. You, and I, have zero idea how much Disney spent marketing the film. They may have spent $40 million, they may have spent $150 million. We can only guess. We have no idea how much of the $349 million they keep. We have no idea how close to $170 million it actually cost. Maybe it cost $120 million and they've exaggerated to create buzz. Maybe it cost $250 million and they are hiding the excessive costs. We don't know.

For decades, the established rule of thumb has been that once a movie earns double its production cost, the rest is profit. Dumbo may be an exception in either direction. Maybe it became profitable at $300 million; maybe it needs to hit $400 million to get there. As you and I don't know, it's safest to go with the standard, and assume it became profitable when it hit $340 million.

Finally-- it doesn't matter. You and I BOTH know it's going to be a cash cow for Disney for decades to come thanks to sales, rentals, streams, merchandise, and various other revenue streams, as the next several generations of kids discover it over and over again.

Now swallow your pride and repeat after me, "another win for Disney!"

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"As you and I don't know, it's safest to go with the standard, and assume it became profitable when it hit $340 million."

Thats typically how I see it as well. I figure if it makes double its production budget then thats good enough to break even somewhere down the line in the ancillary market which we never get to see.

If a movie was a loss because it only made twice its budget then they would never make a sequel. Yet sometimes movies get sequels when making less than twice its budget.

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You make a good point. While we are never privy to the true production cost of a film, and never get even an estimate of its marketing cost, we can infer from what films do and don't get sequels where the line of profitability is drawn.

As an example, the current Godzilla film is a sequel. If Queen's calculations are correct, the original lost about $59 million. Were that the case, they'd have NEVER released a sequel, especially one that clearly cost a small fortune to make.

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"The 2014 Godzilla made an estimated $52M-plus in profit after all post theatrical streams off combined global P&A and production costs just under $300M and $529M worldwide B.O."

The production cost was $160mil. If you applied 2x you would've said anything after $320mil WW is the profit zone -- but in reality it took $529mil WW plus all the post run stuff to make $52mil. The P&A cost was $140mil.

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Fun Fact: Film Making accounting practices are notorious for reporting that they never make a profit. They tend to spend large amounts of revenue to cover the cost of Distributors and Marketing & Advertising Companies.

But what if you own those very companies?

Disney Media Distribution (DMD), a DBA of Disney–ABC International Television, Inc., is responsible for The Walt Disney Company 's branded and non-branded filmed entertainment distribution, now distributing more than 30,000 hours of content to over 1300 broadcasters across 240 territories worldwide. The company is operated under Disney's Direct-to-Consumer & International division.

and

Advertising and Promotions
Disney's ownership of media networks such as ABC, Disney Channel and ESPN is a strategy the company is using to market its brand to Americans. This includes a systematic approach to television advertising, as well as radio commercials, print, outdoor advertising and mobile initiatives, promoting discounts on resorts, and family packages. To reach teenagers, Disney launched advergaming, which puts ad messages in online and video games. The goal is to reach kids directly and encourage them to urge their parents to visit a Disney park for a family experience.


Wait, what? yes that's right the Distributors that Disney owns are also part of the Marketing & Advertising costs, to themselves.

Then that means they can spend almost 40%-70% of their Marketing and Advertising budgets and it stays in house? Yes, it goes from the left pocket to the right pocket.

When the cast appears on Jimmy Kimmel and they air a teaser, trailer, or clip it is house money that stays with the Mouse.

Doesn't Disney own the ESPN network? Sure do. If they place advertisements for films there isn't that like FREE advertisements? On the books it is a cost but also on the books it is FREE. In that respect Disney has a clear cost edge on some studios, especially independent studios.

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From CNN/Money: These amounts have been renegotiated over time and the length of weeks and percentages have changed:

Tickets

Most of the money from ticket sales goes back to the movie studio. A film booker leases a movie to a particular theater for a set period of weeks. The percentage of ticket sales that the studio takes decreases on each week that a movie is in the theater. If the screening was arranged by an independent middleman, he also takes a slice. So the movie has to pull in sizeable audiences for several weeks in order for theater owners to make any serious profits.

During the film's opening week, the studio might take 70 to 80 percent of gross box office sales. By the fifth or sixth week, the percentage the studio takes will likely shrink to about 35 percent, said Steven Krams, president of International Cinema Equipment Co.

If you've got a blockbuster like Titanic or The Lord of the Rings, with audiences that keep streaming in for weeks, everybody's happy -- especially theater owners.

How a theater makes money is totally independent from how a Studio or Film makes money:

Where movie theaters make their money:

Movie tickets: From 20 to 55 percent of ticket price, increasing the longer the movie is shown there.

Snack sales: For theater owners, this is where the real money is made. Concession companies may pay up front to run this part of the business.

Trailers: Movie studios pay theaters to show trailers based on how many people saw them.

Adverstising: Theaters split the $50 to $100 fee for ad slides before movies with local advertising agents.

This whole thing about Studios splitting Ticket-Revenue 50-50 with the Exhibitors (Theaters) has been purely speculative and dumbed down because of the complex contracts and secret details.

The content provider ALWAYS gets the lion's share of the Ticket Revenue and it ain't ever going to be 50-50. A rule of thumb to use to discuss profitability is indeed 2X. For international 2.2 to 2.5X would be a comfortable range due to the reduced Ticket Revenue percentage that Studios receive. Thus make it 2.4X all around and you're good to go.

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What you've just posted is the old way, before the consolidation. That's why films like Titanic and LoTR are mentioned. That article is from 2002, just before the big change.

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Which is why I stated in the beginning that the weeks and percentages have changed and that depends on the Contracts that have since been negotiated with individual studios.

From a Post I made to QueenFanUSA from the article you might be referencing from Deadline:

The deal with exhibitors and distributors is a multi-year contract. You want to make a bet over a contract that you have no idea as to the terms and length of the contract? Really?

A bigger worry to Exhibitors might be that whatever contracts they had with Fox are no longer enforceable and now they might have to accept less. You betting on that also?

From Deadline. Google it.
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Disney is notorious for demanding tough rental terms and big auditorium holds over several weeks, reportedly 65% on Star Wars: The Last Jedi and Avengers: Infinity War. No doubt this will continue, but only for big event films. “They can’t charge that on everything,” says one exhibition insider.

Who gets hurt here? The smaller mom-and-pop independents who will have to weigh the cost of booking Disney titles against the revenue earned from concessions and a four-week lengthy play. Our exhibition sources do not predict a doomsday scenario where theaters start going out of business. Up until now, Disney has been respected by theater owners for holding the line on the theatrical window. We’ll see whether that changes once Disney+ is introduced.
In addition to stiff Disney contracts, the reality is that exhibition does what it wants: If a film isn’t performing, than the title’s showtimes are cut, or the movie is moved into a smaller auditorium. If the pic is over-indexing, then it receives all the multiplex spoils of several showtimes and big-seat auditoriums. It’s Darwinism.

A unified attempt by big circuit exhibition to block Disney’s tough terms would prove challenging, largely because collusion is illegal. Back in the 1990s exhibition tried to take a stand against Disney when they executed a bidding process for their films. UA and Cineplex Odeon stopped playing Disney films, but AMC and Loews caved to Disney’s terms, so the studio was able to carve a footprint. Also, we understand it’s not a hard-and-fast easy rule where Disney always gets the best terms, and other majors do not. Different chains have different terms with each major, with some studios getting better percentages than Disney.
The bottom line? It ain't 50/50.

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Yes, that renegotiating changed nearly everything the CNN article spells out in terms of numbers. And those changes were fought for by exhibitors who were able to strike a better deal after the consolidation. So why quote it as though that's the way it still works?

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Because context matters as to the final determination and what it means. In no way is the split 50/50 that feeds the 2X being not valid as a breakeven multiplier. Simple as that. Even if it's, let's say it is as low as 55/45 and the Studio gets 55%, the bulk is still on the front-end of the engagement before the % changes to more favor the theater owners on a Strong-armed contract from profitable Studios like Disney.

An additional side of this whole Film industry profitability and Breakeven analysis is of course "ancillary revenue streams" which QueenFanUSA wants to claim is a dirty phrase and nothing more than a rabbit-hole of a debate.

The reality really is that not all Companies are made equally. Disney bakes certain streams into their breakeven model for films and film cost and that is by design. Attempts to force Disney's film division breakeven model into a strict apples-to-apples comparison is both disingenuous and duplicitous at best. Disney has advantages why should they be penalized?

Disney invests more in film production because they make more. QueenFanUSA likes to broadcast that Disney films lose hundreds of millions of dollars but never can prove it and then changes the breakeven or profit criteria for other studios.

Context matters.

No one is saying that Disney Animation and Live-Action Animation films haven't lost some money. The losses just aren't as large as QueenFanUSA likes to broadcast. Disney shareholders, Disney stock and the SEC disagree with QueenFanUSA also.

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Agreed. Every studio has their own deals and every studio has their own revenue streams. Its impossible to apply any rule (2x, 2.5x, 3x) and get one that is routinely accurate for all studios. It just can't be done. You'd be better off just by going by shareholders or by how many movies a studio makes per year. Whenever I see a topic about how this or that movie lost money because it only made a little less or more than its production budget I kinda have to roll my eyes at the pretentiousness.

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I agree with you also BUT I am not saying the multipliers can't or shouldn't be used. The caveat is that if you use a multiplier universally for all studios just caveat the discussion and limit the comparison to say, production budgets and leave out ROI and profitability. QueenFanUSA likes to think that Universal is much more efficient in their use of dollars on films because a small film can have a big ROI.

Let's use Get Out! for example. Cost of Get Out!'s production was $4.5 and total gross was $255, not net, but Gross. Simple comparison would be that Universal had a greater ROI and probably netted a TON of money and using simple accounting, production only 2.5X multiplier, ~$240 Million simple net.

Compare that with Captain Marvel, ~$150 Million production, 2.5X production multiplier, $1.127 Billion in gross and the simple Net is $677 Million and the ROI doesn't even compare to Get Out!

But which film made more money? Of course Captain Marvel did by a wide margin. Not only that but CM's domestic gross is significantly higher than Get Out!'s were and that is where the real profits are in this case.

Which studio is more efficient with their dollars, Universal or Disney?

And as you said factor in toys, clothing, video games, theme park attractions, cruise lines, streaming revenue and CM is a goldmine. Get Out!? Jordan Peel probably got a very nice paycheck.

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I think the rule of thumb was 2.5x production budget rather than 2x

It's my understanding that this is now obsolete.

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I haven't heard that, but I wouldn't dismiss that idea. I think the truth is that the budget varies drastically from film to film, and depends in large part on the film's production cost. It's not like it costs more to market a movie that cost $200 million to make than one that cost $50 million. Granted, more will be spent to market the costlier film, but certainly not in direct proportion to its cost. The marketing cost caps somewhere, and that somewhere is likely much less than $183 million.

Also relevant is what marketing is paid and what is free. More than ever, free/cheap social media marketing is replacing television and print marketing. The bottom line-- we haven't even a remote idea, so we have to guess 2x? 2.5x? Who's to say?

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Well, the idea is that the old 2.5x made some attempt to factor in marketing costs whereas 2x does not. Once the exhibitors consolidated in the early 2000's, the split was more favorable to them, and overseas it's even more so. 50/50ish in the end.

And you're right that it varies and we usually dont find out the final figure, but for some small budget movies, the marketing can even be equal or more than the production budget. It's also fluid and will be manipulated on the run -- but 2x is essentially pretending that nothing was spent on marketing.

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The problem with marketing is it doesn't just apply to the theatrical release. When a studio spends money on marketing some of it can include other forms of making money such as toy tie-ins and I think some of the film's marketing budget can apply to adverts used for home video later on. So even if you could get a good estimate on the full marketing budget it would be impossible to know how much of it only pertains to the theatrical release of the movie.

Its possible the marketing pays for itself in the long run but in order to do so it has to cross a certain popularity threshold. Its that threshold that I think has us all stumped. But I tend to think about it in a way that if a movie makes double its production budget then it has reached enough popularity to pay for its marketing in the ancillary market (dvd, blu-ray, ppv, streaming, etc.). And thats where it really gets tricky because some studios crush the ancillary market more than others. *ahem* Disney *ahem*

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Despite saying you agree with FilmBuff on this 2x idea, your conceptions are not the same. He said once it reaches 2x, "the rest is profit" -- meaning they broke even right at that moment, with the rest being in-the-black gravy. But that's not what you're saying at all. You're saying that you believe that's proof of popularity that "somewhere down the line" it will be profitable. I'm not sure how you come up with that being sufficient indication but anyway...

My point is simply is that once you've taken in 2x the production budget, you didnt yet break even on cost. And therefore every dollar taken in after that point isnt profit as FilmBuff has been asserting.

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"My point is simply is that once you've taken in 2x the production budget, you didnt yet break even on cost."

Perhaps but that would only apply to certain movies and not all. With the 2.5x rule you kinda run into the same problem. Sure it could account for some films' marketing budgets but it could overestimate for other films' marketing budgets and for other films 2.5x the budget could still not be enough. So you're kinda in the same spot whether you use the 2x rule or the 2.5x rule. Some go as far as adding $100 million to any 'big budget' movie and multiply that by 3x as the break-even point. The real problem is that there is no rule of thumb to go by.

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I said the 2.5x was obsolete as well -- but at least it acknowledges a cost beyond recouping production. So in that sense it doesnt have the same problem as 2x -- b/c 2x waves off marketing altogether and goes right to profit somehow. 2x says marketing cost is zero. We know it's not zero. So it's guaranteed to be an underestimation when trying to assess when a film has reached profitability during its theatrical run. Ignoring marketing costs b/c you're not sure what they are is not in the same boat as adding some number beyond 2x b/c you know some marketing cost must exist.

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Great it made a profit, unless you can provide me with all the costs associated to this movie , ill assume its made a profit, thanks queens, a nice easy win for me there.

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What an idiot. Sure...marketing and distribution had zero cost.

LOL

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I didn't say that , I said show me a break down of the costs and if you cant , i shall assume it made a profit.

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Why would you "assume it made a profit"? Because I don't have the inner financials from Disney?!?! No one outside of Disney does. The fact that you "assume it made a profit" when every industry Observer has called it a bomb is a reflection on your seemingly low I.Q..

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Low IQ, Haha I'm not the one posting utter garbage on a regular basis, send me links where the claim it's a bomb, so if this bombed , so did shazam you're precious WB movie

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Again with the "send me links" schtick. If you need links to see analysts calling Dumbo a bomb then you really shouldn't try engaging in box office discussion.

And oh yes...Shazam only cost 80-90 million LESS than Dumbo but don't let THAT get in your way. It also made MORE at the box office. So half it's budget but bigger returns...sure that's a good comparison.


You've got to be the most annoyingly dumb poster on these boards. I have a question for you since you need your hand held to do simple math and need "links" to decide if something was a money-loser or not...do you always just assume the upside in every financial endeavor you witness? The numbers are staring right at you on boxofficemojo and you walk away "assuming it made a profit".

Mind numbing.

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Hahaha annoying, you have to be kidding me, there's no on more annoying than you , how much was shazams marketing costs? How much was dumbos? You know Jack shit queen, I own you each time , it's you that knows dick about box office hence you're foolish idiotic predictions, laughing stock of this board , everyone thinks you are a joke.

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Thank you for reminding me why I stopped coming here. Just trash trolling and no real intelligent convo.

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I wasn't "trash-trolling" when I created this thread but I definitely attracted a couple of people that turned it into trash!

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Nope, everyone of your posts are utter garbage

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posted 8 days ago by QueenFanUSA (1848)
82 replies | jump to latest

Oh my...it just never stops for Disney.

It looks like a good chunk of Endgame's profits will have to be swallowed up by the losses on this as well as the over 100 million loss on Dumbo.
Yes you were trolling with that post. There is nothing on the internets, the worldwide webs, the cable financial news that backs up your "It looks like a good chunk" pronouncement. You used the same troll angle on Captain Marvel that any profits that film will make will be eaten up by any other Disney film that you deemed a flop. Mind you, that YOU deem a flop.

So which is it? Is CM paying for the so-called flops or is A:E? You created the thread to troll on Disney/Marvel or at least troll on those that enjoy those films and the studio. You created the thread to sow fear, uncertainty and doubt (FUD) in financial performance. You crafted an opinion piece, stand by your opinion and then argue with everyone who dispute non-facts that don't even support your opinion.

You're not reporting on Box-Office you're trolling on Disney and you know it.

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