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BO 08•26-28•16 - Audiences Don't Breathe as Suicide Squad slips to second

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Matt

Member
Did you read this entire thread before posting that? Matt's 4 times rule isn't even close and has already been debunked... it may be 2 times but even that might not apply to big budget movies because their advertising costs are less relative to their budget.

Never-mind, I see you saw kswis's post.
Well it's absolutely not two times, that's way too low unless litterly nothing was spent on marketing and everything else.

I'm actually thinking about this more and trying to trace the people I have asked about it.

WB guy told me it the first time.
A Sony VP said that was about right.
Someone in development at Fox said that seemed high "but who knows."
And a Disney woman refused to talk about it.

That WB guy was at a fundraiser in 2012 I think.
 

DeathyBoy

Banned
Well it's absolutely not two times, that's way too low unless litterly nothing was spent on marketing and everything else.

I'm actually thinking about this more and trying to trace the people I have asked about it.

WB guy told me it the first time.
A Sony VP said that was about right.
Someone in development at Fox said that seemed high "but who knows."
And a Disney woman refused to talk about it.

That WB guy was at a fundraiser in 2012 I think.

Hollywood comes out with shit like LOTR and HP never making a profit - their accountants are amazing.
 
What is going on in this thread?! o.o

The rule of thumb Matt is speaking about does ring true (and depends when that conversation with the WB exec happened), but belongs in a different era: the 1990's and early 2000's where marketing campaigns weren't as expensive as they are today.

Edit: kswis did goood


Also Movie Execs love to do some creative accounting to ensure the movies never make a profit. Very few films make profit on the books. The marketing costs may on paper be the same level as the budget but in reality much lower and only the executives and the accountants know the true numbers.
 

3N16MA

Banned
The first couple of pages of this thread have so much trash information.

700M+ films with $175M budgets are now big money losers. 300M DOM is trash.

GoTG must have bombed big time with its 200M budget. Ant-Man is a bomb and so was TWS.
 

BlizzKrut

Banned
The first couple of pages of this thread have so much trash information.

700M+ films with $175M budgets are now big money losers. 300M DOM is trash.

GoTG must have bombed big time with its 200M budget. Ant-Man is a bomb and so was TWS.

If it's a DC movie you gotta make $900 million to break even or it's by default a box office fail.
 

kswiston

Member
So speaking about the actual profitability of films; there is this blog run by a producer of indiefilms (and he has written for various film related publications) that takes a look at data and statistics surrounding films. I've seen it mentioned by people whom I respect so I'm assuming that he is in the right ballpark;
How movies make money: $100m+ Hollywood blockbusters
Unfortunately the article is way too long to compress into a couple of pull quotes but I'll try to include some key points and graphs.

He also has an article just talking about profitability. Which includes this gem:

I can't personally vouch for it being 100% accurate, but it is above the usual armchair analysis.

This stuff is probably pretty close to the mark.

However, we need to remember that comic films have a much better batting average than your typical $100M+ blockbuster film.

Let's look at his numbers for a minute, and let's completely ignore ancillary revenue and marketing for simplicity's sake.

The average $100M+ blockbuster has a production budget of $150M and takes in about $70M domestic and about $100M international in earnings for its studio. For argument's sake, let's say that 10% of the international earnings from a $150M blockbuster comes from China. That would be a $40M Chinese gross on average, which is probably in the right ballpark when you account for films that don't get a Chinese release at all (and the flops like Pan), vs the few Civil Wars and Zootopias propping up the numbers.

So studio earnings are $70M domestic, $90M international, and ~$10M China on an average blockbuster costing $150M.

Use the general 55% domestic, 40% international, and 25% China gross participation rule to get rough theatrical grosses of $127M domestic, $225M international, and $40M worldwide. That's $352M without China, and just under $400M with China. We can go back through the past several years of blockbusters to compare that to the actual average, but $350-400M worldwide looks to be generally correct to me.


So let's focus on the ~$350M average without China, since that is directly comparable with the list of superhero films I posted above.

On that list are 3 films that don't meet our $100M+ budget criteria (Deadpool, Hellboy 2, and Ghost Rider). Throwing those out, you have 30 superhero films from the past 8+ years. Here are how those 30 films stack up in comparison to the overall $100M+ blockbuster averages discussed above

Code:
				All $100M+ blockbusters		$100M+ Super hero films (since 2008)
Avg WW gross (minus China)	$350M				$605M
Reported Production Budget	$150M				$185M
Gross/Budget Ratio		2.33x				3.29x

It's not just the Avengers and TDK boosting things either. 25 of the 30 comic book films were over that "$350M outside of China" average gross.

21 of the 30 had grosses of at least $400M outside of China. Over half had grosses over $550M outside of China. If we just look at films released after the post-Avengers bump, only The Wolverine and Fantastic Four failed to hit $400M. Those two, plus Ant-Man and X-Men Apocalypse were the only post Avengers films under $550M WW minus China.

The only films with a worse Gross to Budget ratio than that of the general $100M+ blockbuster average were Green Lantern, Watchmen, Fantastic Four (2015), Green Hornet, Amazing Spider-Man 2, and The Incredible Hulk. No one disputes any of those films doing poorly. X-Men First Class and Apocalypse had about the same multiplier as the overall average.

If you look at the author's overall breakdown of costs and expenses, you'd notice that the average film either breaks even or is pretty close to breaking even over the course if its lifetime. Using the same yardstick for comic films, at least 80% of the $100M+ comicbook films released since Iron Man 1 hit that break-even point. Perhaps more, since superhero films have more merchandising opportunities and better home video sales than a random $100M film does.
 

jonno394

Member
Not a bad drop for Kubo. I'm gutted my nieces don't like the look of it because it means I have to wait for the blu ray to watch it.

Hope it does ok for Laika but sure a small loss on it won't hurt them too much.
 

xaosslug

Member
MESS @ this thread becoming Matt vs. Neogaf.
0XCio6D.png
 

killroy87

Member
Saw Don't Breathe, and while it was well-crafted, I was pretty blown away by the high critical reception. The movie was super intense, but all of its intensity was predicated on every single character acting like a complete moron. I'm a big horror fan, and consider myself to have a pretty high tolerance for the tropes, but I can't remember the last time I've been that discouraged by each character being so completely dumb. Literally every decision they made had me roll my eyes.

Thrillers like 10 Cloverfield Lane, which aren't exactly the same but share some of the same DNA, have spoiled me with their intelligence.
 

Stage On

Member
Not a bad drop for Kubo. I'm gutted my nieces don't like the look of it because it means I have to wait for the blu ray to watch it.

Hope it does ok for Laika but sure a small loss on it won't hurt them too much.

Why do you need your niece to see it?

It's an all ages film. There's absolutely nothing wrong with an adult going to see it on their own. I work at a movie theater and people do that all the time.

I took my mom with me to see it and we both loved it. Don't deprive yourself of the experience of seeing it on a big screen!
 

wachie

Member
Matt, you should stick to the insider stuff. Not preach some shaky ass math and then try to peddle it into some WB exec.

Dont go out of your comfort zone and dont get SWASS.
 

Alrus

Member
I can't believe we're back to thinking WB budgeted Suicide Squad with the prospect that it was going to make over 800M worldwide. It was ludicrous thinking last week, it still is now.

Was there discussion about MoS losing WB money back then? I remember the legs being kinda shit and laughs about the possibility of Thor 2 beating it worldwide (which almost happened) but I don't recall people saying it lost WB money...
 
I can't believe we're back to thinking WB budgeted Suicide Squad with the prospect that it was going to make over 800M worldwide. It was ludicrous thinking last week, it still is now.

Was there discussion about MoS losing WB money back then? I remember the legs being kinda shit and laughs about the possibility of Thor 2 beating it worldwide (which almost happened) but I don't recall people saying it lost WB money...

if MoS weren't successful I don't think they would have doubled down and handed Snyder the keys to their movie universe.
 

3N16MA

Banned
I can't believe we're back to thinking WB budgeted Suicide Squad with the prospect that it was going to make over 800M worldwide. It was ludicrous thinking last week, it still is now.

Was there discussion about MoS losing WB money back then? I remember the legs being kinda shit and laughs about the possibility of Thor 2 beating it worldwide (which almost happened) but I don't recall people saying it lost WB money...

GoTG was probably their peak with this film. Going to come within striking distance without China. I have to think WB knew there was a good chance it would not get a release in China.

Things looked bad after the OD drop but in the end it looks like SS will end up as good as WB could have hoped.
 

Busty

Banned
Personally, I really enjoyed War Dogs. I think this film is really going to find an audience on home video etc.

I wonder if Don't Breathe ill put Fede Alvarez into a higher 'bracket' as a director. I know he's been courted for some bigger studios projects, I wonder if this hitting is what puts him over the top. Also, Lights Out continues to do really impressive business for WB.

Every week I check the WW numbers for Beyond and every week they barely seem to be increasing at all. I'm assuming that the Chinese release will inflate it but even still those are some horrible foreign box office returns.

Rumoured budget numbers aside the $350m that Tarzan pulled in seems pretty solid, especially since it was some people's lock in for 2016's bomb of the year.

Since everyone's still arguing:

Chinese grosses are great for boosting those Worldwide totals to impressive numbers, but studios only take 25% of the gross from China, and ancillary revenue is like 10x lower than it is domestically (though that situation is starting to improve). $90M of domestic gross is about the same as $200M of Chinese gross, not considering any other revenue but box office. If you factor in everything else, it's probably closer to $50M domestic (or $60-75M in Europe) is as good as $200M in China.

Civil War and Age of Ultron were by far the two biggest comic films in China, and even in those cases, we are talking about another $45M and 60M going to Marvel Studios respectively (Marvel's theatre cut outside of China for those two films was about $450M for Civil War and $525-550M for Age of Ultron). As such, I think you can mostly discard China when trying to get an idea of Superhero movie success. At best, it bumps the worldwide theatre cut by 10-15% and the ancillary revenue cut by 1-2%. Often less.

Also, China has only been a significant part of worldwide superhero grosses since 2012 (with $90M+ grosses becoming frequent in 2014). Setting it aside provides an apples to apples comparison to anything released earlier.


Below is a chart of every comic book Superhero film (minus the super low budget stuff) released since the MCU started. Each film is listed alongside their worldwide gross without China inflating things, their reported budgets (some of these differ from what is listed on BOM if we got clarifying budget reports after the film was released), and their gross to budget ratios.

Suicide Squad is listed at the bottom along with an estimated final gross range based on current trajectories.

Code:
Title					Worldwide minus China		Reported Budget		Gross/Budget Ratio
Avengers				$1434M				$220M			6.52x
Avengers: Age of Ultron			$1165M				$265M			4.40x		
Iron Man 3				$1094M				$200M			5.47x
The Dark Knight Rises			$1032M				$230M			4.49x
The Dark Knight				$1005M				$185M			5.43x
Captain America: Civil War		$962M				$250M			3.85x
Deadpool				$783M				$58M			13.5x
Batman v Superman			$777M				$250M			3.11x
Amazing Spider-Man			$709M				$230M			3.08x
Guardians of the Galaxy			$677M				$195M			3.47x
X-Men: Days of Future Past		$632M				$200M			3.16x
Iron Man 2				$616M				$200M			3.08x
The Amazing Spider-Man 2		$615M				$290M			2.12x
Man of Steel				$605M				$225M			2.69x
Captain America: The Winter Soldier	$598M				$170M			3.52x
Thor: The Dark World			$589M				$170M			3.46x
Big Hero 6				$574M				$165M			3.48x
Iron Man				$570M				$150M			3.80x
Thor					$449M				$150M			2.99x
X-Men: Apocalypse			$420M				$178M			2.36x
Ant-Man					$414M				$130M			3.18x
The Wolverine				$374M				$120M			3.12x
X-Men Origins: Wolverine		$373M				$150M			2.49x
Captain America: The First Avenger	$371M				$140M			2.65x
X-men: First Class			$354M				$150M			2.36x
The Incredible Hulk			$254M				$150M			1.69x
Green Lantern				$220M				$200M			1.10x
The Green Hornet			$208M				$120M			1.73x
Watchmen				$185M				$130M			1.42x
Fantastic Four (2015)			$168M				$120M			1.40x
Hellboy 2: The Golden Army		$158M				$85M			1.86x
Ghost Rider: Spirit of Vengence		$133M				$57M			2.33x

Suicide Squad				$700-730M			$175M			4.00-4.17x


Without getting into bullshit about super high marketing above and beyond all of these other films that had ubiquitous marketing efforts as well, how can one justify Suicide Squad not being a success, given the stats on every other film in the genre? Even if the reported $175M budget was under by $50M (making the film $225M), Suicide Squad's gross to budget ratio would still be in the >3x MCU range on that low end $700M gross.

Another tremendous post. A great read, thanks. :)

I thought the opposite. It's going to struggle to hit 300m stateside, and won't hit the 800m it needed worldwide to make an actual profit according to the various rumours and articles released beforehand. Like every DC movie, it's not a bomb but it fails to live up to the potential and sends audiences away with a bad taste in the mouth.

I feel like you've answered your own question here.

HINT - Rumours are not a source.

MESS @ this thread becoming Matt vs. Neogaf.
0XCio6D.png

Uhhhh, Matt met the owner of RKO Pictures while at a bare knuckle boxing match held in the carpark of a KFC.

I think he knows what he's talking about.
 

Busty

Banned
Busty stop bringing up Tarzan, it just makes me look stupid

I invested heavily in leopard skin Speedos thinking that there would be a craze in loin cloth inspired beach wear after Tarzan was released.

Sadly not.

That film has made fools of us both.
 

kswiston

Member
I think someone earlier brought up only 1 film from summer making the domestic top 5 this year, but Finding Dory, Secret Life of Pets, and Civil War should all make the final list. I dont think we will be getting 3 more films past the $365-370M mark this year.
 
I'm amazed!!!!

It's going to beat Superman.

A fucking movie about Harley Quinn featuring a cameo from Joker is going to beat Superman at the box office.

That's crazy to me and I didn't think it would happen! Especially with the garbage reviews, I was expecting super shitty legs and it's held in there. Good on em.

I think thats because there was more of a divide between critics and the audience with this one. Yeah there are people who dislike who are totally justified to that opinion, but wom seems to be stronger than say bvs which was near universally hailed as garbage rocks. Thats how it was for me anyway, loved squad and hated bvs.
 

Chamber

love on your sleeve
I'm amazed!!!!

It's going to beat Superman.

A fucking movie about Harley Quinn featuring a cameo from Joker is going to beat Superman at the box office.

That's crazy to me and I didn't think it would happen! Especially with the garbage reviews, I was expecting super shitty legs and it's held in there. Good on em.

I spent all year telling you guys Harley and Joker would put asses in the seats. I think this makes up for my overzealous BvS predictions.
 

Y2Kev

TLG Fan Caretaker Est. 2009
How convenient.



So why bring it up at all? If it's normal for superhero films to fail in theaters but make money through merchandise and media sales, there's no point in using that formula to determine a film's success. It doesn't even check out with the Thor franchise either, because the second film lost them millions.

I mean, this is sort of common knowledge. Here's a comment by Shu Yoshida where he says only 40% of playstation games SCE publishes make any money. Matt's right...these are hit media.

edit: Ah crap it's dualshockers.
 

gatti-man

Member
Suicide squad has to be the least deserving film of its success in recent memory. I can be entertained by almost anything and it's really really bad. I wouldn't watch it for free. Just droll and poorly written. Worst movie I've seen for the year by a good margin.
 
Deadline did a breakdown for ASM2 including estimated/sourced data from DVD sales and TV deals.

http://deadline.com/2015/03/amazing-spider-man-2-profit-box-office-2014-1201389608/

They estimated it netted $70.38M profit when all is said and done.

At that time, sony wouldn't get any merchandise share, so not sure why they count 25M in revenue for that.

Same as the 5M revenue for XMen DOFP merchandise:

http://deadline.com/2015/03/x-men-days-of-future-past-profit-box-office-2014-1201389620/

I haven't seen an XMen merchandise out in the wild in years, especially one tied to the movies (Which is where Fox would get a share). Also, where in that sheet would the licensing fee cost go? I can't really tell.

They also have 0 in merchandise for SW TFA which is confusing, to say the least.

http://deadline.com/2016/03/star-wa...ovie-profit-2015-lucasfilm-disney-1201726142/

That said, their estimates for 2014 and 2015 do make sense, as I would expect most movies to make profits, even if marginal profits.

I think someone earlier brought up only 1 film from summer making the domestic top 5 this year, but Finding Dory, Secret Life of Pets, and Civil War should all make the final list. I dont think we will be getting 3 more films past the $365-370M mark this year.

I think the only movie left that has a shot of beating that mark this year is Rogue One.
 

Matt

Member
Matt, you should stick to the insider stuff. Not preach some shaky ass math and then try to peddle it into some WB exec.

Dont go out of your comfort zone and dont get SWASS.
Man, people suck. I wasn't preaching anything, just talking. On a discussion board. About things topic related. Calmly and politely. About a topic I have some knowledge of. And I was perfectly willing to adapt my point of view based on the discussion.

Ugh. I'm sorry I may have...overestimated the marketing budget of some major motion pictures? That is a serious sin. You're right, the only value I have to anyone here is dropping sweet insider info. I'll shut up otherwise.
 
Just got back from Kubo what a fantastic movie! I hope it has some steady legs at least for a little bit. It's definitely one of my favorites that I've seen this year.
 

kswiston

Member
Man, people suck. I wasn't preaching anything, just talking. On a discussion board. About things topic related. Calmly and politely. About a topic I have some knowledge of. And I was perfectly willing to adapt my point of view based on the discussion.

Ugh. I'm sorry I may have...overestimated the marketing budget of some major motion pictures? That is a serious sin. You're right, the only value I have to anyone here is dropping sweet insider info. I'll shut up otherwise.

Hopefully you continue to participate. Box office Gaf is better now that it isnt mostly me talking to myself like it was a couple of years ago :p
 

guek

Banned
Man, people suck. I wasn't preaching anything, just talking. On a discussion board. About things topic related. Calmly and politely. About a topic I have some knowledge of. And I was perfectly willing to adapt my point of view based on the discussion.

Ugh. I'm sorry I may have...overestimated the marketing budget of some major motion pictures? That is a serious sin. You're right, the only value I have to anyone here is dropping sweet insider info. I'll shut up otherwise.

Don't sweat it, especially not grief from wachie
 

kmfdmpig

Member
Man, people suck. I wasn't preaching anything, just talking. On a discussion board. About things topic related. Calmly and politely. About a topic I have some knowledge of. And I was perfectly willing to adapt my point of view based on the discussion.

Ugh. I'm sorry I may have...overestimated the marketing budget of some major motion pictures? That is a serious sin. You're right, the only value I have to anyone here is dropping sweet insider info. I'll shut up otherwise.

While I disagreed with you in this thread I think your posts have been well thought out and contributed to the discussion. I know it sucks to be ripped apart for a post, but don't sweat it. Your posts are good and worthwhile.
 

Biff

Member
This is the kind of discussion I look forward to in box office threads. Debunking the black box of movie financials.

Great posts by Matt and kswis.

I'm completely suprised by the 'worldwide gross divide by 2' rule of thumb, as it just seems so damn punitive.

But 2x budget to find total budget including marketing is something I've heard for years now and still seems to be true.

Keep at it all!

P.S. dat Deadpool gross-to-budget ratio
P.P.S. The Squad is a hit. Today I saw it, and now must admit, I felt it was shit.
 

kswiston

Member
So Summer's more or less settled at this point.

Top 10 films this summer:

1) Finding Dory - $480-485M
2) Captain America: Civil War - $409M
3) The Secret Life of Pets - $365-375M
4) Suicide Squad - $305-320M
5) Jason Bourne - $165-175M
6) Star Trek Beyond - $155-160M
7) X-Men Apocalypse - $155M
8) Ghostbusters - $127-129M
9) Central Intelligence - $127M
10) The Legend of Tarzan - $126M

Bad Moms could end up bumping Tarzan off the bottom of the list if it continues to get those sub 30s holds.
 
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