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re: Mandalorian and Grogu might surpass projections. . .a little

Posted on 5/30/26 at 4:10 pm to
Posted by Proximo
Member since Aug 2011
24548 posts
Posted on 5/30/26 at 4:10 pm to
exactly, it's tough to quanitfy and it's also tough to tie it directly to that film.

that's why it isn't factored into the analysis for the profitability of a film itself. comparing anything would be useless if you're getting into those abstract figures

there's an argument for adding the PVOD sales prior to streaming but not sure how much that amounts to. Not even sure why anyone would pay $20-30 for a digital copy that's going to come out on streaming a few weeks later
Posted by BlackAdam
Member since Jan 2016
7206 posts
Posted on 6/2/26 at 5:18 pm to
quote:

Exactly. This board is obsessed with adding marketing to the budget, but they conveniently leave out all the ancillary profits the studios make


Those ancillary revenues and costs are not part of the equation. It is production cost - tax credit + P&A. If a production's box office is not 2x that calculation the studio will usually not be happy.

Sometimes not hitting 2x is acceptable, but that is the general benchmark.

The other revenues and costs are figured in when calculating the net profit for a production, but there are a lot of assumptions and these are allocated to each production in the slate based on those assumptions. Many times the goal is to keep productions in the red, so net profit participants aren't owed anything.

Posted by Free888
Member since Oct 2019
3350 posts
Posted on 6/3/26 at 2:58 am to
The trades are notorious for reporting production budgets (supplied by Disney) but not actual production costs.

I tend to believe someone like Valiant Renegade on YouTube. He’s a finance guy by training, understands the Hollywood financials (and has inside sources), and he also uses sources like the UK tax credit data as a basis for things like marketing costs, since the studios have to spell out their finances to get the credit.
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