Lone Ranger world wide sales sales now total $244577083 surpassing the $215000000 cost. Why is Disney able to take a $170000000 loss on this film? Where is the break even point? Double the sales? There seems to be hefty expenses.
They are going to take a loss on this. Perhaps the overseas market helped a little. And they probably made good money on the product tie ins on this movie. But they will lose. It might not be as much as the 190 they put a top on, but it will be .
But the Monsters Inc. University movie is an example why this company can take a chance or two on others. They have very very strong franchises. They are almost guaranteed of two or three hits a year.
Their 2014 isn't looking as strong as it was a few days ago - they had 4 blockbusters scheduled - star wars, avengers II, pirates, and finding dora. The last two have been pushed out. But what movie studio wouldn't love having star wars and avengers II on there scorecard. And the other two will still bring in a fair amount, just a little later.
it's a very complex formula but essentially 90% of gross to the studio for the first 2 weeks and then 50% or a taper for the next 2 weeks and then 20% after that...Movie theaters make very little money on ticket sales in the first 2 weeks which is why popcorn et al are so expensive and why I eat before I go or bring my own snacks....yup...plus who needs that cholesterol...pop your own and save your heart
Better yet look at the world wide sales for Monsters University = $ 730,855,314. Some of the total was in the previous quarter, however Disney will take the write off now for Lone Ranger so it is over and done with. Figure the loss on actual cost of production and then a ton of worthless advertising and promotion in the mega millions. They should stick to a good story and less on the special effects. Tonto is not supposed to be in full war paint all the time. (the part was overplayed and a waste of good talent).
Not to worry because between Marvel and the Star Wars franchise in the next three years the stock will be heading toward 100. (wishful thinking -- YES, possible with a couple of billion dollar box office hits in the same year) Disney could be the first studio to do over 2 billion in one year.
The film industry is a magical land of fantasy....accounting....They have the ability to create whatever gains and losses they would like. That's why films have multiple production companies etc. If the Film industry were under the same scrutiny the SEC gives towards publicly traded companies then you might get an answer...they always seem to lose money when there are profit related bonuses owed...