Avatar Numbers… So Far

Avatar is on track to take the crown from Titanic’s $1.842 billion box office record.  Perhaps most impressive is that Avatar has been in theater’s for less than six weeks, while Titanic was in theaters for 41 weeks.

BMO analyst Jeffrey Logsdom provided the following estimates for Avatar’s profitability:

• Avatar’s production budget was $300 million
• Global marketing and distribution costs are $175 million
• Avatar will gross $650 million at the US box office
• Avatar will gross $1.95 billion worldwide during its theatrical run
• After movie theaters get their take, Fox will get $942 million
• Home video sales will be worth another $420 million in revenue
• Game licensing and development will bring in an additional $70 million
• Fox Studio’s total revenues will exceed $1.56 billion
• James Cameron will get $320 million ~ 20% of studio revenues
• Fox Studios and its investors will generate a net profit of $700 million

 

Playability Trumping Marketability

One of the important emerging trends from 2009 is the marketability/playability power shift.  While marketing has traditionally held importance over playability, the two are far less mutually exclusive.  Though studio slates are lined with sequels and remakes for 2010, the shift in power from marketability to playability is occurring.  New web applications provide viewers with a louder voice than ever before – a voice that no marketing budget can contend with.

Broadening viewer generated dialogue is a game changer for movie marketers that results in two key points:

1. Loss of control
2. Increasing importance on story

As it becomes easier for viewers to express their opinion to an increasing number of people, filmmakers inherently lose some control.  Marketing’s focus shifts from portrayal to interaction.  Never before has it been so easy to cultivate an audience.  Never before has it been so easy to lose an audience.

While marketing will always remain a critical component of a film’s strategy, no longer can it overshadow a weak story.  Marketing in 2010 is far less a result of budget and far more a result of product.  Therein lies the core progression of playability against marketability.  The renewed focus on strength of story will result in better films, happier viewers and benefit the long-term health of the industry.