re: Disneys Snow White trailer suffering absolutely ridiculous ratio

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how does it make sense to continue to make 350 million dollar budget movies that have to make near over a billion to simply have a tiny profit

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Let you in on a little industry secret: these movies don’t cost that much to produce. The studios will form an LLC for their big budget movies and loan that LLC whatever budget number you see ($200-250 million) to produce the film in question. Very very rarely will these films hit/go over those numbers unless they have to scrap and reshoot large portions of the movie (Justice League/Snow White). The Studio will charge the LLC a sizable interest rate on the funds that loaned out to them (10-20% is usually the standard) and the LLC will pay back the studio from the box office gross. It’s how some massively successful films will “somehow” show only a small profit or even a loss even though they were clearly a financial success.

Another thing is most people are falsely assuming that studios are basically cutting the box office 50/50 with theaters when that’s not the reality anymore. Bigger studios - particularly Disney - negotiate a high percentage of the box office cut, especially for their bigger films. Back in 2018/2019 Disney had an insanely favorable cut structure with all the major theater chains where they would do a 75-25/80-20 split for the first two weeks of release, 60-40 for the next 2 weeks, and 50-50 for the next 4, and then would go to 40-60 for the rest of the run. They were getting 60-70 percentage of WW grosses depending on how much of the box office was international and how much of it came from China.

Beyond just the box office. These movies pull in anywhere from $50-150 million in marketing tie ins before a single ticket is sold. That doesn’t even begin to factor in any licensed merchandise sales specifically tied into the movie.

In the last 20 or so years there are only a handful of movies that had a $200 million plus budget that genuinely failed to turn a profit. A lot of them drew disappointing box offices for sure, but were still a financial success because of marketing tie ins and merchandise (Little Mermaid and Justice League fit in here).

If you want a TL;DR version of what Hollywood Accounting is and why these articles saying movies are box office busts are full of shite, check out what happen with Tom Hanks and Forrest Gump when he asked the studio to share in the profits of the box office and they told him they took a loss on a movie that cost $50 million to produce and earned over $600 million at the box office.

I don’t doubt there’s slight shady ness here and there but I absolutely dent your premise things like the marvels, Indy 5, the flash; and so many more the past 3-4 years are just no big deal and didn’t lose much money

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Last 8 years

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I didn’t check it but likely Barbie

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I didn’t check it but likely Barbie

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Idk if you know this, but Barbie was sort of a thing before the movie.

Outside of Blumhouse and A24 two mega successful studios those movies aren’t made anymore.

This isn’t really true at all. Most of them just don’t get anywhere near the level of marketing that the blockbusters do and for good reason. It Ends With Us cost $25 million to produce and has earned just over a $100 million in its first week in release.

A lot of the lower/mid budget movies of yesterday wind up going to streaming services as they need a steady stream of new content and aren’t worried about a box office loss because that’s not a risk for them.

5 of the top ten movies in the box office this past weekend had budgets under $100 million and I believe all of them were under $50 million.

Your mid and low budget movies are still coming out, you just don’t hear about them being successful because you don’t actually go see them you just want to be contrarian online and complain about the big budget movies and say how much you love smaller budget movies without actually spending a cent or second on them.

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They didn’t have to do shite. They CHOSE to create Disney + because in their arrogance they believe they could rival and even beat Netflix. As opposed to keeping the model that’s made them insane money and licensing content to Netflix and prime.

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They chose to create Disney Plus because they are a business driven by profit incentive and they had a product with a market that they weren’t meeting. There are a lot of companies you can say made a bad decision to start a streaming service but going after the 2nd largest one is a bad take.

Second largest one? Rofl dude are you a Disney simp or something? Please post what metric you’re using? In terms of total watch time they just dropped to 6th and are over 15 billion in the negative. If you wanna use total subscribers you’re also insane. Many of those are low revenue users outside the USA and Canada and a ton of those inside the USA get it for free via spectrum

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Disney gets 50% of that money at most since international is less than domestic. Let’s say they spent 100mil marketing total all in 300 mil and be generous with a 50% return of 800 mil. Extremely nice haul. 500 mil in profit. All wiped out and even into the red with their failures of that same movie archetype for years strange world, wish, light year, etc etc

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You really are not equipped at all for this discussion. Take a lap. Or nap.

There’s a reason no one is engaging with you. And I will not either any longer. In an 8 page thread where you’ve posted massive essay long post I’m the only person ever that’s replied to you. No one wants you here