Is there a risk BB could flop?

Discussion in 'Transformers Movie Discussion' started by Theoutcast87, Oct 13, 2018.

  1. SilverOptimus

    SilverOptimus Movie News Monster Moderator News Staff

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    Breakeven number is 750 million* for Solo and that is without the Marketing budget.
    Breakeven = (Production Budget + Marketing Budget) X 2.5

    The ticket sale was 392 million. The theaters and the distributors keep Approximately 50% to 75%. So, the studio only saw a loss.

    Anyway, Bumblebee's production budget is 128 million. Even if that + marketing is 200 million, the break even is at 500 million worldwide total ticket sale. Not a huge target but with a heavy competition, this is a challenge. Passing 500 means it's a box office hit for Paramount.
     
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  2. WishfulThinking

    WishfulThinking The world has moved on...we've always said.

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    Either way, it's basically a wash and you CAN use the estimated production budget as a base line. If anything else, that's basically the studio's "break even" line and one of the only numbers that does get released to the public.

    Which is why it's important to keep an eye on. Power Rangers even made money - but the studio was expecting a lot more if they were to commit to a sequel. In that way, it wasn't a flop. It just didn't perform to expectations. There was a filmmaker not long ago lamenting the fact that it wasn't all that long ago that if a movie made it past the estimated production budget even a little bit, the film was deemed a success. Now studios want north $700 million global if they plan to invest $250-300 million. Basically, they want double or more their investment back so that they can reinvest the money into bigger and bigger sequels. The problem is that if a movie franchise goes beyond the three film rule, you start running into the "Law of Diminishing Returns" and you run into a brick wall like TLK or Solo.
     
  3. WishfulThinking

    WishfulThinking The world has moved on...we've always said.

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    How can you say 750 million is without the marketing budget when you use the marketing budget in the equation?

    Again, that's all accounted for. The breakeven point is generally always the production budget estimate. But let's say you are right on the 50%. That's still more than half way to breakeven.

    It only needs to make $128 million to break even. The marketing money would have been spent regardless so it's not counted by studios when gauging the film's success. If it wasn't BB The Movie, it would've just been used for Action Point or Overlord.
     
  4. WishfulThinking

    WishfulThinking The world has moved on...we've always said.

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    Furthermore, regarding marketing costs:

    $200 Million and Rising: Hollywood Struggles With Soaring Marketing Costs
     
  5. SilverOptimus

    SilverOptimus Movie News Monster Moderator News Staff

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    You can take the Marketing Budget out of the equation IF you want to.

    Breakeven isn't about surpassing the production budget (or production budget + marketing budget). It's about surpassing your budget after theaters keep their cut.

    I'll put it this way:
    You have 100 cookies, which you produced for $1 each.
    You give it to a friend (for free) to sell them and bring back the money.
    Your friend sells them for $1.50 each but keeps $0.40.
    But your friend only manages to sell 75 cookies. 25 reaches expiry date and had to throw away.

    Now: Total cost to make the cookies is $100.
    The sales from the 75 cookies is $112.50
    Did you breakeven? No. Absolutely not. From outside it looks like you made a $12.50 profit. But you didn't.
    Remember? Your friend kept 0.40 from each sale. That's a $30 cut from the total sale.
    You only got back $82.50. You lost $17.5.

    So, the real breakeven is at $136.50 which is selling 91 cookies and not at $100. :) 

    When Does a Movie Break Even at the BoxOffice? | Bomb Report
     
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  6. Powersa

    Powersa Car Robots

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    Theaters keep their cut (of box office revenue). Generally US Theaters keep half (of ticket sales on US film).
    Return of Investment (ROI) in the US = 50% of box office.
    ROI overseas = 25% of box office.
    Do the math.
     
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  7. SilverOptimus

    SilverOptimus Movie News Monster Moderator News Staff

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    Yep. Transformers: The Last Knight needed to make $1 Billion just to reach the Breakeven (a.k.a ROI).
     
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  8. Powersa

    Powersa Car Robots

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    Also, take a look at the Movie Studio behind Bumblebee -Paramount Pictures, which, is not a matter of risk, but doomed for failure.

    Paramount has been struggling with declining gross revenue year by year. Here's an example of how bad - Paramount's proud No.1 film in 2017, yes you guessed right, Transformers TLK, was No.25 in 2017 US domestic box results, between No. 24 "Wonder" and No. 26 "Girls trip". That's how bad.

    Paramount's top film in 2018 is Mission Impossible - Fallout, with a 220M US gross. In terms of box office, will Bumble and newcomer girl beat Tom Cruise and his well established Mission Impossible Universe? I highly doubt it. I wouldn't call Bumblebee a flop, just not feeling some of your optimistic, that it will beat Aquaman.

    Hasbro will continue making Transformer toys as always, just Paramount we're talking about here. Not end of the world.
     
  9. BigRed

    BigRed Well-Known Member

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    The movie has a higher chance of flopping than it has of being a success. Travis Knight is not a guy that tends to bring in alot of people to the theater, 80s nostalgia has been losing steam, the franchise is poisoned, the release day is crowded.
     
  10. sevenlima

    sevenlima Well-Known Member

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    Could not perform like the last transformers movies, but not become a totally flop.
     
  11. Hadlen_Weltall

    Hadlen_Weltall The original Mad Genius Gunpla and Cow Master

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    All depends on people overcoming Franchise Fatigue.
     
  12. Ash from Carolina

    Ash from Carolina Junior Smeghead

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    Bumblebee does have a factor that most films don't have to deal with. Since Paramount has new leadership just how much will Bumblebee have to make for the new leadership to feel like they must stay the course? Maybe just making a profit would be enough but what sort of moving of the goal post might the new leadership make if they really want to put their own stamp on Transformers?
     
  13. Rumblestorm

    Rumblestorm Well-Known Member

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    Omfg that bad?!
     
  14. BarricadeLives

    BarricadeLives i'm you! i'm your shadow!

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    not impressed with the bumblebee trailer...then again tlk looked awesome so...
     
  15. Rumblestorm

    Rumblestorm Well-Known Member

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    I think you and like 3 other people are alone on that.
     
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  16. GirlBot

    GirlBot Mini-Cassette

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  17. mohaniya

    mohaniya Member

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    very good observation, agree with you.