Here’s something no one expected at the global box office during the pandemic: an occasional movie that’s likely to make a profit.
Film funding sources tell us this as Legendary Godzilla teen Kong hits $ 357.8 million WW today, the photo is already set to bring cash back to Warner Bros. – an estimate $ 96.4 million currently – even with the controversial HBO Max line item in the mix, though the section is slightly opaque. This is an impressive achievement considering that major foreign markets in Europe (except Spain) and Brazil are still closed due to Covid, and the fourth concern addressed by Adam Wingard is only an estimated 25% of China’s box office collect.
To break up the numbers of those that are known, Godzilla teen Kong‘s net production cost was $ 160 million. Remember, as part of the HBO Theater Day-and-Date Agreement, Warners Legendary reimbursed its 75% share of the production cost ($ 120 million) to acquire full rights to the film, including China. We are correct: the PRC is not a shared BO pot between Legendary and Warners, although the former does receive a distribution fee from the Burbank, CA lot. While Netflix reportedly offered $ 200 million to Legendary for the rights to GvK, we hear that the deal with Warners was a complete purchase of their costs on the fourth concern; there are no ongoing BO entries or prizes, as the monster-mash film collects more global box office.
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Currently, rounded off, GvK earned $ 70 million from local BO estimated rent for the studio $ 35 millionHowever, it is quite possible that the amount will increase to $ 45 million as the film settles $ 90 million on the outside (and this is with most of Canada still closed). Let’s count $ 35 million now. add $ 41.4 million from China (this is 25% of the current $ 165.4 million ABOVE there; the picture could rise to $ 180 million), and currently $ 55 million in foreign leases from remaining foreign territories (Russia, Mexico, Australia, Taiwan, India, Spain, Korea) which earned $ 122.9 million. It brings the total global rent by date of $ 131.4 million.
These numbers have the following predicted income for: GvK: $ 60 million of Warner Bros. International robust TV deals, a net $ 65 million (at cost) of domestic home entertainment which includes PPV but not SVOD or HBO Max, and foreign home entertainment of $ 25 million net (at cost).
Now paid and free TV, which includes HBO Max according to sources, is valued $ 45 million. Under the WarnerMedia plan, HBO Max plans to pay a license fee for the 31-day concurrent rights at the Warner Bros. Theater to make up for lost money at the BO. HBO Max and Warner Bros. allegedly agreed to pay an amount for these fees: $ 10 million or 25% of the film’s net production cost, whichever is greater. In this case, the number is $ 40 million (of the $ 45 million). The license fee apparently does not stem from the value GvK create for HBO Max in the form of subscriptions or engagement. Last weekend, HBO Max claimed that the legendary title was the most viewed content ever on the streamer in a given weekend, and third-party streaming corps Samba TV supports the verdict GvK during the first five days from March 31 to April 4, by an average of 3.6 million households watched for at least five minutes.
Add up all the income, and it brings GvK on $ 326.4 million. Subtract the production cost of $ 160 million and an estimated global selling price of $ 70 million (because Europe and Brazil are not open), and this brings up the current projected profit of the film $ 96.4 million for top-tops, interest, and overhead. The first Godzilla of Legendary achieved in our 2014 Box Office tournament and earned $ 52.4 million to $ 62.6 million in combined interest / off-the-top / overhead and participation. Even if applied at cost GvK, the film would still be north of break-even.
GvK is a good indication that the box office is starting to recover again after a year in which the exhibition suffered from the pandemic and lockdown. But make no mistake: more money could be made here by the film if the rest of the world was open, and if the title was not on HBO Max in the States.
This is Warner Bros. ‘global theater distribution and marketing options that should receive a pat on the back from their fellow WarnerMedia and AT&T colleagues for a great job here.
Nancy Tartaglione contributed to this report