Keep in mind that these production costs are highly suspicious and I can almost guarantee it cost more than that. But even going by Disney’s own numbers, they are floundering.
They need their last two films to make $1 billion just to break even. The last two films will probably make just over $1 bn combined.
Also there are other factors to consider like damage to brand name and putting original ideas on the back burner. Is Disney finished in the long run?
Caleb Flores
Games, merchandise, toys. That's where the real money is at. The films are just 2 hour long toy commercials.
Jose Taylor
Women don't buy toys, comic books, video games, novelisations, action figures, LEGO shit or whatever. Maybe they buy a t-shirt for their instagram but that's all
Liam Diaz
Get the new Star Wars Suicide Bomber Ship the only Bomber ever designed to kill everyone on board guaranteed!
Nathan Jackson
>Keep in mind that these production costs are highly suspicious and I can almost guarantee it cost more than that. It's usually the opposite though. They inflate the prices so more money goes into the pockets of the happy merchant producers. Now think how much money they have made in merchandise, theme parks, branding deals, videogames, etc. and you're probably looking at them making money hand over fist. Just think about how much the battlefront remake sold. Just the videogame franchise alone would be worth the 4.5 bn investment.
James Williams
You forget they only get half the money of ticket sales at best (they get less in chinamen areas).
All the merch undersold which huge amounts stuck on shelves.
Austin Lewis
>Based George will buy it back for pennies on the dollar in a year and restore the franchise with one swift stroke.
Juan Gonzalez
IT WAS A SLAM DUNK. It's simple make cool lightsaber fights, John Williams, some going back between light and dark, make connections with previous movies. IDK its like they tried to hard to make it bad it blows my mind
Chase Roberts
TLJ toys undersold. TFA was explosive.
Andrew Perez
>You forget they only get half the money of ticket sales at best (they get less in chinamen areas).
That's not true at all Disney has a lot of power and uses it on theater owners. They get closer to 60 to 70% of the domestic box office.
Kayden Jenkins
The games are selling well though. No one buys toys anymore.
Ryder Cruz
Yeah, moms don't buy any of that. Especially single ones.
Zachary Hill
Unfortunately we can’t do a thorough breakdown of merchandising sales vs production costs since there is not as much publicly available information. But we do know that SW toy sales are down dramatically from TFA.
Dominic Mitchell
>He thinks they're only doing two more of films of star wars
Marvel was bought for a similar sum and they're on like the 12th movie now. LucasFilm was a steal and it's still gonna take in money for them.
Andrew Harris
...
Charles Turner
>Is it a good investment
They are likely still in the red on it, but they have plenty of years left to milk the shit out of it unless they completely destroy the franchise.
Other things you also haven't factored in are the spin off series in other media, merchandising(and the costs and profits associated with them) which is actually where Star Wars made most of it's money from and the advertising for the brand as a whole, which could easily run into over a billion.
It is interesting to note that Star Wars merchandise and Video games have taken a massive nose dive in relation to expected sales along with the TLJ
Ryan Rivera
>the Force Awakens made $1.75b in profits Stopped reading there. Do literally any basic research on the costs and profit-margins of the film industry
Aiden Stewart
why are you ignoring marketing costs? you can easily double the production costs because of marketing alone.
Ian Wood
>They need their last two films to make $1 billion just to break even
Thats not how disney sees thing. 4.5 bn for one of the most iconic franchise in modern history is a steal, the fact that they have made several billions in just a few years should clue you in on that. Disney has the capital to reinvent, re introduce and re launch SW as many times as they feel fit in the future. This is the key, this includes the entire franchise not just recent merchandise based on the recent movies.
Gonna be condescending prick but this as dumb as people who think netflix is in trouble for being 20 billion in debt.
Thomas Green
And 40% (or less) overseas. It averages out. Also he forgot marketing costs. All those starwars logos and bags of oranges have got to cost something.
Kevin King
>Keep in mind that these production costs are highly suspicious and I can almost guarantee it cost more than that. But even going by Disney’s own numbers, they are floundering.
Uhghhh if anything production budgets are inflated. Not the other way around.
>They need their last two films to make $1 billion just to break even. The last two films will probably make just over $1 bn combined.
You think the next two Star Wars movies will only make 500 million dollars each?
>Also there are other factors to consider like damage to brand name and putting original ideas on the back burner. Is Disney finished in the long run?
Even if you take your numbers as accurate, which they are not. And you ignore all other sources of revenue (Secondary market movie sales, merchandise. Licensing the IP) that would mean Disney has made back 80% of a 4.5 billion dollar investment in just a few short years.
Joshua Bennett
they've most likely already broken even due to merch rights at this point
george understold, 4 bill is nothing, and disney still has 9, rian's new trilogy, and whatever films they want
they'll milk this thing dry
David Thomas
This. Movie theaters themselves take a big cut. They dont just make their money off of pop-corn and soda
Josiah Carter
Oh and I forgot to mention, the mouse does not get 100% of the gross profit, which is the number you see when you look up how much a movie made, everyone will be looking for their cut, from the theatres to the government.
Jaxon Ross
These estimates are completely wrong as pointed out by the people in this thread already. Besides, Disney will do another 10 Star Wars movies if they can.
Jose Gutierrez
That's the point. They're probably already planning another trilogy. They already have like 12 Marvel movies.
Owen Collins
Disney sells the rights to toy producers, they get the money upfront. The loss of sales on TLJ toys means the money they'll get for future films will be dramatically less.
Ayden Evans
Don't forget that they have Indian Jones too. And they can basically sell Lucasfilm and get their money back immediately but I don't think that will happen. However that bitch killed the golden goose. They'll make capeshit-like movies that will barely make $500 millions every fucking year from now. It's not much but it pays the bills I guess
Easton Perez
Fucking newfag we have been over this calculation a billion times now. Disney only gets 50 to 60% of the revenue, the rest goes to theatres. Then there is marketing costs which are approx as high as production costs. Correct but toy sales are declining and Battlefront II was another PR disaster.
Zachary Thomas
The goose isn't dead at all though.
Kevin Perez
Marketing costs are done by a different department and are usually allocated ahead of time to be spent on whatever they have in the pipeline. It can also be said in a franchise situation such as this that it's not just promoting the movies themselves but the brand as a whole, which makes it even more difficult to break down.
William Adams
A PR disaster that sold 9 million copies. Less than the 10 million projected, but I doubt they're mad about that.
Nolan Moore
>he doesn't know
Aiden Cruz
That doesn't change the fact that by their standards the franchise is vastly underperforming.
Matthew Gray
See pic related
You’re right, I completely forgot to factor in the theater’s take. Its even worse for Disney than I thought
Benjamin Stewart
>they have plenty of years left to milk the shit out of it Each passing year adds opportunity costs onto those $4B. You need to compare the Star Wars revenue stream with investing the money elsewhere, gathering a steady stream of interest above inflation rate each year.
Isaac Cruz
The damage of it is long-term, user. As with TLJ.
Parker Kelly
>unless they completely destroy the franchise.
if SOLO, EP IV and whatever their next project (Kenobi?) ALL underperform this will effectively kill the franchise and maybe even allow for an opening for someone else to buy SW
Dylan Stewart
The marketing costs are considered part of the production costs.
>Uhghhh if anything production budgets are inflated. Not the other way around. You have no evidence for this. Just pure speculation.
Gabriel Ortiz
Nah, they've alienated a huge amount of their fanbase. They may still make movies that make money but they'll have to trim budgets and live off lower ticket sales. Even if the direction is righted, they will only be able to shit out cheaper movies with diminished returns each time. The only thing that might, just maybe, fix this is to put it to bed for at least 10 years and then just find a way to ignore the sequels.
Leo Smith
Marketing costs x2 production budget You need to x3 production budget to make a profit Toy sales are already falling Nobody pays this much money for a series to tank in China It's not doing well desu
Jacob Thomas
>Netflix is $20 billion in debt, and that's okay
Kayden Hernandez
Meant for also
Andrew Garcia
>rian's new trilogy Lol whut?
Daniel Nelson
They are unlilely to make a single dime on Battlefront II sales. More lilely, they have licensed the rights to EA at a horrendous price and EA needs those sales to recover it. However, the PR disasters of both Battlefront II and TLJ makes future licensing a much greater risk.It'll propbably affect the licensing revenue negatively for Disney, especially when toy sales are also lagging and it all might indicate Star Wars fatigue.
Dylan Turner
They did 2 years before. It raises the question of Star Wars fatigue. And it will surely affect future licensing revenue negatively.
Alexander Lopez
where have you been user?
kennedy gave him a brand new trilogy to work on his own
Mason Nguyen
>The marketing costs are considered part of the production costs. No, they're not
Matthew Parker
>The marketing costs are considered part of the production costs. lolno
Aaron Cook
If they still let that happen then they really have lost their minds. Like straight up underwear on heads drawing pictures on the walls with shit crazy.
David Moore
Marvel was another terrible investment as far as I’m concerned. A company makes more money by selling their own IP than buying other people’s for exorbitant fees and then force-feeding it down people’s throats with billions of dollars of advertising.
We are already seeing the law of diminishing returns in effect for both Marvel and SW. What does Disney do after that? They have no original ideas and reboot fatigue has firmly set in.
Michael Bell
there a 29 year old autistic girl i know who buys all of those things on a regular basis
Matthew Bailey
To think, if they just hadn't gotten greedy with the loot box scam the game probably would have made them bank.
Joseph Turner
it sold 7 million copies you retard
Colton King
But if you destroy the brand name of the franchise by completely changing what it is, then what’s the point?
Jaxson Martinez
No one else is going to buy SW you stupid fuck. No one else has the cash reserves to even make Disney the kind of offer it would warrant.
Even if the "new" films tank and they only break even, SW as an intellectual property will make the mouse money for another 20 years just with its integration into Disneyland parks, TV series, and metric fucktons of classic era merchandise.
Austin Thompson
No, they're brave.
Leo Miller
You're forgetting that Disney doesn't see 100% of the money, and has to pay taxes. At this rate they'll need another trilogy with side movies to start turning a profit.
Carter Ramirez
They buy it but they categorize it under whom it's intended for i.e. little boys They just have to make sure it's withing the mom's sensibilities
Carter Rogers
two billionaires could raise the funds
people like Soros, Spielberg, Gibson, Lucas, any combination thereof and most importantly this is predicated on the theory that NONE of their future endouvours run a profit if that doesn't happens then the price of the IP will NOT be within striking distance of two billionaires
Carter Hall
I remember back when CoD and GTA would sell dozens of millions of copies.
Gavin Sullivan
thats still less than they expected to sell.
Lucas Moore
This, GTA IV was the highest grossing anything when it debuted.
Hunter Wilson
So it was a bad investment is what you’re saying?
Grayson Scott
Add at least 200 million for each of those films for the marketing and Disney doesn't get all the revenue as it is split with cinemas and others in the supply chain. Round it to maybe 60% of total box office for each film.
Something like TLJ costs around 400 million and got 1.1 billion return. At 60% of that, Disney only made 650 million. So a total profit of 250 million. It's not peanuts, but it's also not what you would expect when putting up that kind of money either.
Xavier Ramirez
>What does Disney do after that?
They're like locusts. They're moving from franchise to franchise...
Nolan Russell
Rightly so. But wasn't the 10/10 it got from literally everyone but i still think it's better than V
Isaiah Ramirez
>Disney has the capital to reinvent, re introduce and re launch SW as many times as they feel fit in the future.
You severely underestimate what it takes to kill a brand as big as star wars. You need to leave Sup Forums's bubble and get some real perspective if you actually think it has been anything close to a real failure.
Benjamin Ward
Nope
Wyatt Mitchell
>I-If I keep saying it isn't a failure, that makes it true!
Henry Gomez
They buy it for their sons, but their sons won’t want them because Nu-Wars doesn’t appeal to boys. Girls don’t give a fuck about it either despite Disney aiming the franchise at them.
Lincoln Gonzalez
Let me fix your shitty maths for you:
>Initial purchase: $4.5 bn
>TFA: $2 bn - $245 mill production cost - $200 million marketing cost = $1.55 bn
>RO: $1 bn - $200 mill production cost - $200 million marketing cost= $400 mill
>TLJ: $1.3 bn - $200 mill production cost - $200 million marketing cost= $900 mil
>$1.55 bn + $400 mill + $900 mil = $2.85 bn
>Divide by 2 because theatres get about 50% = $1.43 bn
$4.5 bn - $1.43 bn = ~$3.07 bn in the red.
Landon Hill
This is the problem. Boys don't want the toys because they don't see any fun heroic characters they can pretend to be. They don't want to be girls or pussies. That's all they have in nuWars.
Matthew White
>theatres get about 50% not even close
Benjamin Morales
It was closer to 40%, or even a third of the box office wasn't it? Fucking mouse
Chase Reed
autistic girls are mentally boys there simply aren't enough of them to sustain a toy empire.
Lincoln Myers
Games like Sleeping Dogs need to sell multiple millions just to break even. Fuck knows what something like BattleWars needs.
Anthony Hall
First few weeks (when the majority of the sales are) the theatre gets next to nothing, that's why concessions cost so much - it's the only real revenue a theatre gets. They gradually get more and more of the ticket sale income but by the time they're getting 50% of it the most of the sales have dried up. Opening week or two I'd be surprised if they made more than 30%
Tyler Sanders
Yeah but with games it's different. EA had to bid for the license in the first place and I'm sure Disney gets a cut off of each game moved. If anyone lost because Battlefront 2 underperformed it was EA. They're putting in the capital.
Michael Barnes
Faggots like you say this in every thread and in every thread we point out that it 1. barely scratches into millions and 2. Is very unpopular right now.
Dominic Walker
This. They could've had Luke do boring shit with lightsabers and John Williams music for three movies and it would've printed money.
Henry Collins
They are simply 2progressive5you shitlord
Ryder Cox
>Opening week or two I'd be surprised if they made more than 30% Well prepare to be surprised then you fucking idiot
Christopher Robinson
>Rogue One made $1b Holy shit, people actually watched this trash?
Blake Wilson
I think that's what most people wanted in the first place
Colton Smith
Rogue one is solid star wars. Should've made a trilogy around that.
Jose Scott
Literally everyone wanted that. JJ wanted to establish new characters though and Rian wanted to subvert our expectations so yeah
Jeremiah Long
Disney also had to buy out JJ's Paramount contract to come back to work on SW
Hudson Carter
Was meant to sell 14 mil by end of yeah and keep selling after that
Grayson Green
>Rogue one is solid star wars. Should've made a trilogy around that.
Matthew Watson
Chinamen and Vader m8.
Brody Walker
only thing theyve done with the property so far that had anything interesting in it
Ethan Wilson
>last two films oh please
Anthony Edwards
They also have Indiana Jones and Willow
Dylan Sullivan
>5 PoA >Shitty characters to begin with >Reharsh of OT vehicules >Less quality in the sculpt and quality
Geez, I wonder why they don't sell very well
I miss the clone wars era with all the jedis, clone troopers etc, it was so dope
Ryder Clark
Rogue One is the only decent thing to come out of Disney Wars so far.
Easton Smith
its the best of all the nu soywars you dwerp
Oliver Mitchell
>Implying any of the new movies are good
Ayden Perry
Forgot marketing which is 100% production cost for star wars movies and all the failed merchandise and licensing deals.
Wyatt Hall
What's so bad about it? At the very least it was original and didn't ruin the franchise. Better than 7 and 8....