SomeOldGuy
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Back in June, Morgan Stanley broke the costs down thusly:
On the cost side he figures the movie production will run $423 million — including $200 million for the film, $98 million from profit participations, and $125 million to make and distribute home videos. Print and ad costs subtract $175 million for the movie, and $40 million for the home video.
http://deadline.com/2015/06/star-wars-vii-third-highest-grossing-film-forecast-1201452210/
Usually films are considered to hit profitability at 2.5 to 3 times production budget (which would be the $200 million) but even if you use the whole $423 million figure it's still already in the black. And then there's this from the same link:
Disney’s also poised to take a larger than average slice of the theatrical sales pie. The studio typically splits the proceeds in half with domestic theaters. But for SW “we expect Disney retains 55-60% of domestic box office receipts and 40-45% of the international take,” Swinburne says.
Just using the lower end of both projections, as of yesterday that gives The Mouse $358 million from domestic and $271 million from international for a total take of $629 million.
tl;dr Disney is making a killing.
On the cost side he figures the movie production will run $423 million — including $200 million for the film, $98 million from profit participations, and $125 million to make and distribute home videos. Print and ad costs subtract $175 million for the movie, and $40 million for the home video.
http://deadline.com/2015/06/star-wars-vii-third-highest-grossing-film-forecast-1201452210/
Usually films are considered to hit profitability at 2.5 to 3 times production budget (which would be the $200 million) but even if you use the whole $423 million figure it's still already in the black. And then there's this from the same link:
Disney’s also poised to take a larger than average slice of the theatrical sales pie. The studio typically splits the proceeds in half with domestic theaters. But for SW “we expect Disney retains 55-60% of domestic box office receipts and 40-45% of the international take,” Swinburne says.
Just using the lower end of both projections, as of yesterday that gives The Mouse $358 million from domestic and $271 million from international for a total take of $629 million.
tl;dr Disney is making a killing.
