Top Story - Math behind Disney's Movie Magic

Hello Readers. I am back with Leeds 1888 your weekly dose on media and entertainment insights.

Today I am talking about :

• Weekly box-office collection of the top Hollywood movies

• The revenue breakup and costs of Disney’s recently released movie ‘Doctor Strange’ and the key takeaways

• Buzz from the entertainment industry

• Pearls from the past

_{Story of the Week}

Disney never ceases to amaze us with its larger-than-life movie productions that hit the silver screen every year.

Whether it's the action-packed Marvel Cinematic Universe, the heartwarming adventures of Toy Story, or the magical journey of Frozen, we all eagerly await these mega-budget movies from the House of Mouse.

It's intriguing to witness how each year these movies are exceeding their previous magnificence in terms of scale. I became inquisitive about the reason behind their immense budgets, so I examined the revenue statistics of "Doctor Strange and the Multiverse of Madness" using the Deadline.com calculation.

Doctor Strange and the Multiverse of Madness is an MCU movie Franchise produced by Disney and released last year ( 2022). The movie was produced on a budget of around $200 Million. Over and above the production cost, Disney incurred more expenses on the prints, ads, participatory costs etc. taking the total spend to almost $500 million dollars - massive isn’t it !

Now if a studio spends that much money on making and releasing a film , there must be well planned projections and revenue streams to recover the costs and make profits. The Domestic Box Office collections , meaning US cinema ticket sales contributed to $411.3 Million. The International Cinema ticket sales on the other hand contributed to more than $544.4 Million. The top 5 countries to contribute to the international box office collections were:

1. Korea- $55 million

2. UK- $50 million

3. Mexico- $40 million

4. Brazil- $35 million

5. Australia- $30 million

Out of the total worldwide collection of $955.7 million, Disney's share was $440 million, indicating that the remaining amount of over $500 million, which is more than twice Disney's earnings, went to other stakeholders such as multiplex owners and distributors. This trend is not new, as Disney movies have historically been known to generate significant revenue for their box office partners, making cinema owners and distributors worldwide eagerly anticipate their releases. As a result, Disney is able to expand the release of its movies to more countries and screens, thereby increasing its earnings.

Disney appears to conduct extensive research on the potential reach of their franchise among global audiences, including factors such as geographies and release dates, which helps them achieve these significant numbers at the box office. Additionally, it has become increasingly common for Disney and other major production companies to allocate a similar budget for marketing and advertising as they do for production costs. In the case of "Doctor Strange and the Multiverse of Madness," the print and ad spend amounted to a staggering $150 million, which is equivalent to 20% of the total revenue. Disney understands the importance of investing in the marketing of a movie as much as in its production.

It is worth noting that the movie did not have a release in China due to their boycott of Hollywood cinema last summer, and it also did not release in Russia. As a result, the film fell short of the usual MCU benchmark of $1 billion in total revenue. Nevertheless, it is an impressive performance by any measure.

Key Takeaways

1. Disney allocates an equivalent amount of funds to marketing as it does to the production budget for its movies, generating global anticipation for its releases.

2. Disney conducts extensive research on various revenue streams, demographics, and optimal release timings to maximise outreach and viewership.

3. With its successful franchises such as Frozen and MCU, Disney not only generates substantial revenue for itself but also for its box office partners, television networks, and streaming services. Consequently, Disney films receive preferential treatment for release.

Buzz from the Media & Entertainment World

‘THE SUPER MARIO BROS. MOVIE’ is now the highest grossing video game movie adaptation of all time. In just the 1st week of its release, the movie has already grossed a whooping $444 million smashing all records !

Pearls from the Past

The man who designed the iconic art deco style cinema halls in the 70s and 80s

Waman Moreshwar Namjoshi was an Indian interior designer who gained fame for his exceptional work in designing single-screen cinemas in India during the mid-20th century. He was born in Mumbai in 1925 and completed his education in architecture and interior designing from the Sir JJ School of Art in Mumbai.

Namjoshi's work was characterised by his innovative use of materials, colours, and lighting, which gave his designs a unique identity. His designs for single-screen cinemas like Raj Mandir Cinema in Jaipur, Golcha Cinema in Delhi, and The Liberty Cinema in Mumbai are considered some of his best works.

Namjoshi was also responsible for designing the interiors of several high-profile hotels, restaurants, and theatres across India, including the famous Kamalistan Studio in Mumbai. He was a prolific artist and worked on more than 300 projects throughout his career.

That concludes this week's edition of Leeds 1888 from me.

I hope that you found the newsletter informative and enjoyable. Please share the newsletter in your circle.

See you again next week!

Take care,

Vipul.