Avatar's real cost | Movie News

Avatar's real cost
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by: Tony Lang Nov. 10, 2009

James Cashron

As if expectations on James Cameron's AVATAR weren't high enough, now comes the ultimate question: what exactly will determine if the film is a success or a failure?

Although TF2 came out with some of the most scathing reviews this year, that one is still called successful in that it set out to rake in tons of cash - and it did, in spades. Then again, SUPERMAN RETURNS is often called a flop even though its international take put it more than $100M in the black.

Cameron, working out of an original -as in unfamiliar- story aimed to blow our minds visually. What if THAT fails? Even more pressure is being put on the director, by the AVATAR's finances" href="http://www.nytimes.com/2009/11/09/business/media/09avatar.html?_r=2&src=twr&pagewanted=all" target="_blank">New York Times who through some calculations only they know of came up with an approximation of what AVATAR will have cost its many financial backers once international marketing has been considered: over $500M.

If the visuals don't live up to Cameron's own hype, how high will the profit margin need to be for a seal of success to be stamped on AVATAR? Does Fox hope for something close to TITANIC's take?

Source: New York Times

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Extra Tidbit: How big a push would an insanely annoying Celine Dion theme song give the film?

36 discussions Expand all
 
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Kilar
11:54PM on 11/10/2009 Add as a friend | MFC profile
500mil with R+D and Marketing
If you factor in all the stuff the article did, then its no more expensive than Spiderman 3 or PotC3. The article is factoring in R+D and marketing to get to 500mil... No other film is quoted with those extras added into the budget, so why does Avatar get this special treatment?

If it costs 500 mil all up then fine, but dont make it sound like an insane number when Spidey and Pirates...
If you factor in all the stuff the article did, then its no more expensive than Spiderman 3 or PotC3. The article is factoring in R+D and marketing to get to 500mil... No other film is quoted with those extras added into the budget, so why does Avatar get this special treatment?

If it costs 500 mil all up then fine, but dont make it sound like an insane number when Spidey and Pirates would be in the same ballpark if you included thier production budget + marketing + R+D costs.

Get real or STFU New York Times
 
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finoj05
11:39PM on 11/10/2009 Add as a friend | MFC profile
The movie needs to break even at the box office, which means it will have to make something like 8 or 9 hundred million world wide. THEN... DVD sales will give it profit.
The movie needs to break even at the box office, which means it will have to make something like 8 or 9 hundred million world wide. THEN... DVD sales will give it profit.
 
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Doctor Supertramp
8:07PM on 11/10/2009 Add as a friend | MFC profile
Okay
Okay. This is actually a big deal if the movie doesn't make enough money. I know it could be the future but it could always be looked at as an overpaid potential film.



I personally think it's going to be extremely groundbreaking. Besides the studio obviously believes that if Avatar is that huge that the price of these films will go down.
Okay. This is actually a big deal if the movie doesn't make enough money. I know it could be the future but it could always be looked at as an overpaid potential film.



I personally think it's going to be extremely groundbreaking. Besides the studio obviously believes that if Avatar is that huge that the price of these films will go down.
 
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pug_life
7:37PM on 11/10/2009 Add as a friend | MFC profile
$500 million is a shocking, yet realistic number considering the nature of this movie. i don't think it will make that back domestically, even if you counted home video sales. internationally though, i think this movie will kick ass.
$500 million is a shocking, yet realistic number considering the nature of this movie. i don't think it will make that back domestically, even if you counted home video sales. internationally though, i think this movie will kick ass.
 
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Red4
6:30PM on 11/10/2009 Add as a friend | MFC profile
I have a strong feeling Avatar is going to flop. HOWEVER, in my mind, Avatar is already a success. In other words, even if the box office ends up biting Cameron in the ass, I am going to love the movie, and add it to my movie collection with a great deal of admiration.
I have a strong feeling Avatar is going to flop. HOWEVER, in my mind, Avatar is already a success. In other words, even if the box office ends up biting Cameron in the ass, I am going to love the movie, and add it to my movie collection with a great deal of admiration.
 
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J. Burton
3:44PM on 11/10/2009 Add as a friend | MFC profile
Going on Faith
I'm just going to see it because of Cameron's track record. Aliens, Terminator 1/2, and True Lies. Because of those films, I HAVE to see Avatar.
I'm just going to see it because of Cameron's track record. Aliens, Terminator 1/2, and True Lies. Because of those films, I HAVE to see Avatar.
 
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Ocelot_Snake
2:06PM on 11/10/2009 Add as a friend | MFC profile
whered my comment go?
whered my comment go?
 
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Ocelot_Snake
2:05PM on 11/10/2009 Add as a friend | MFC profile
whered my comment go?
whered my comment go?
1 Reply
 
Ocelot_Snake
2:06PM on 11/10/2009 Add as a friend | MFC profile
nvm. for some reason only 5 replys were showing up
nvm. for some reason only 5 replys were showing up
 
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Sulaco
1:25PM on 11/10/2009 Add as a friend | MFC profile
It'll be successful. But HOW successful is the real question. Over time, it'll become a brand name, and it'll make it's money though slower and thru different avenues.
It'll be successful. But HOW successful is the real question. Over time, it'll become a brand name, and it'll make it's money though slower and thru different avenues.
 
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darthmoridin
1:01PM on 11/10/2009 Add as a friend | MFC profile
Poor theatre owners
It's amazing to me that most people think that a box office total goes to the studio, when in fact the split is generally no better than 60/40 on a huge movie. (This is why SR is considered a flop: budget+marketing was not covered by box office take.)



If Avatar's total cost is $500MM, it's gonna have to do at least $850MM worldwide to break even at the BO.
It's amazing to me that most people think that a box office total goes to the studio, when in fact the split is generally no better than 60/40 on a huge movie. (This is why SR is considered a flop: budget+marketing was not covered by box office take.)



If Avatar's total cost is $500MM, it's gonna have to do at least $850MM worldwide to break even at the BO.
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Deadly Sinner
6:26PM on 11/11/2009 Add as a friend | MFC profile
No, that's completely wrong. For big budget movies, the initial split is like 80/20-100/0 to the studios. After a couple weeks, the theater's take gradually rises to 60/40 or something. Since most of the money is made on opening weekend (which studios place high importance on,) the studios still get most of the money. This is also why theaters make most of their money on concessions.
No, that's completely wrong. For big budget movies, the initial split is like 80/20-100/0 to the studios. After a couple weeks, the theater's take gradually rises to 60/40 or something. Since most of the money is made on opening weekend (which studios place high importance on,) the studios still get most of the money. This is also why theaters make most of their money on concessions.
 
Silverload
7:26PM on 11/10/2009 Add as a friend | MFC profile
WTF?!? -

Movies do not factor in the extra costs that this article factors in. It is common knowledge that every film has to make around 3x its budget back to brake even. This is because the budget does not reflect the real cost.

This article factors in the 3x multiplier, and acts like Avatar is the only film to spend this much money. Every movie with a $200millio...
WTF?!? -

Movies do not factor in the extra costs that this article factors in. It is common knowledge that every film has to make around 3x its budget back to brake even. This is because the budget does not reflect the real cost.

This article factors in the 3x multiplier, and acts like Avatar is the only film to spend this much money. Every movie with a $200million budget has a real cost of around $500million+. 2 or 3 films with this kind of budget comes out every year.

Also, this article does point out that the quoted budget from Cameron & producers is $230million.
 
wtf?!?
5:40PM on 11/10/2009 Add as a friend | MFC profile
no, $500 million is the approximate cost of the movie according to this article - "Even more pressure is being put on the director, by the New York Times who through some calculations only they know of came up with an approximation of what AVATAR will have cost its many financial backers once international marketing has been considered: over $500M." not sure how you can deduce from that statem...
no, $500 million is the approximate cost of the movie according to this article - "Even more pressure is being put on the director, by the New York Times who through some calculations only they know of came up with an approximation of what AVATAR will have cost its many financial backers once international marketing has been considered: over $500M." not sure how you can deduce from that statement that the budget is only $230 million. clearly for the movie to break even it has to recoup its marketing budget as well, which according to the article brings its cost to $500 million.
 
Silverload
1:44PM on 11/10/2009 Add as a friend | MFC profile
No, $500million IS the break even. $230million is the budget, $500million is the break even.
No, $500million IS the break even. $230million is the budget, $500million is the break even.
 
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wtf?!?
12:49PM on 11/10/2009 Add as a friend | MFC profile
this movie is going to be one of the biggest bombs of all time. unlike Star Wars or Transformers, which have 25-30 years of history and fan anticipation behind them, Avatar has nothing to propel it to such a massive level of success that it would require to be a hit. Concept plus fx can sell a movie and drive people to the theatres, liek Star Wars did and Transformers does, but this movie...
this movie is going to be one of the biggest bombs of all time. unlike Star Wars or Transformers, which have 25-30 years of history and fan anticipation behind them, Avatar has nothing to propel it to such a massive level of success that it would require to be a hit. Concept plus fx can sell a movie and drive people to the theatres, liek Star Wars did and Transformers does, but this movie just has fx. the concept looks lame.
 
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Silverload
12:35PM on 11/10/2009 Add as a friend | MFC profile
Um, this is normal for $200million budgeted movies.
Why do you think movies have to make back nearly 3x their budget? Because once you factor in everything then the real number is easily nearly 3x the said budget. This has ALWAYS been, and every $200million movie out there had a real number of around $500million give or take.



Terminator Salvation & Transformers 2 were both the in exact same ball park as Avatar. They each had to...
Why do you think movies have to make back nearly 3x their budget? Because once you factor in everything then the real number is easily nearly 3x the said budget. This has ALWAYS been, and every $200million movie out there had a real number of around $500million give or take.



Terminator Salvation & Transformers 2 were both the in exact same ball park as Avatar. They each had to cross $500million internationally to be considered a success. That is why T4 is considered a failure despite making nearly $400million worldwide.



Hell, POTC: At World's End had a budget of $300million and a real number of over $700million.
 
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slimbo0330
12:12PM on 11/10/2009 Add as a friend | MFC profile
Fanboys & nerds are hyped and have huge boners for this. However, the general public looks puzzled as to whether this even looks like a good movie or a story that could be a sci-fi movie original. while watching football with people who arent movie buffs and just average joes, a couple of them said that the movie looks stupid. im seeing a profit, but not by much
Fanboys & nerds are hyped and have huge boners for this. However, the general public looks puzzled as to whether this even looks like a good movie or a story that could be a sci-fi movie original. while watching football with people who arent movie buffs and just average joes, a couple of them said that the movie looks stupid. im seeing a profit, but not by much
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AntoineDoinel
12:31PM on 11/10/2009 Add as a friend | MFC profile
A lot of people thought LOTR looked stupid, and still do, and it managed to make a lot of dough.
A lot of people thought LOTR looked stupid, and still do, and it managed to make a lot of dough.
 
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i love lamp
11:42AM on 11/10/2009 Add as a friend | MFC profile
this'll rake in the fanboys for a week or two and then tank.
this'll rake in the fanboys for a week or two and then tank.
 
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snoopmish
11:30AM on 11/10/2009 Add as a friend | MFC profile
You can count me in with the people who aren't all that excited about it. I might see it if word of mouth is good but so far I can take it or leave it from what I have seen. It just doesn't look that interesting to me. Kind of "Battlefield Earthy"....
You can count me in with the people who aren't all that excited about it. I might see it if word of mouth is good but so far I can take it or leave it from what I have seen. It just doesn't look that interesting to me. Kind of "Battlefield Earthy"....
 
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IQuitMrWhite
10:53AM on 11/10/2009 Add as a friend | MFC profile
I'm psyched for this movie, but as much as it pains me to say this...New Moon will make more. Just like King Kong and Superman Returns, Avatar will make back its budget in theaters and then profit a bit from DVD and Blu-Ray. But nothing close to TDK or Titanic...or even TF2.
I'm psyched for this movie, but as much as it pains me to say this...New Moon will make more. Just like King Kong and Superman Returns, Avatar will make back its budget in theaters and then profit a bit from DVD and Blu-Ray. But nothing close to TDK or Titanic...or even TF2.
 
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FrancoYesca
10:27AM on 11/10/2009 Add as a friend | MFC profile
Well...
I guess I can respect the fact that he's aiming for TITANIC numbers again (swing for the fences Jim) but I don't think 14 year-old girls are going to be seeing the flick 7 times in a row. I think it will probably make a tidy profit (Blu-Ray will help), but nothing ginormous. Something tells me it will be big in Japan.
I guess I can respect the fact that he's aiming for TITANIC numbers again (swing for the fences Jim) but I don't think 14 year-old girls are going to be seeing the flick 7 times in a row. I think it will probably make a tidy profit (Blu-Ray will help), but nothing ginormous. Something tells me it will be big in Japan.
 
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ElderPredator
10:25AM on 11/10/2009 Add as a friend | MFC profile
Something to consider...
If the film is amazing, it could easily make $100 million in DVD and Blu-Ray sales when it releases next year which is great.



I swear though, that "New Moon" bullshit is going to make so much money because of the hype. I hope the same goes for this flick.



If "Transformers 2" can make $800 million worldwide and $100 million in DVD/Blu-Ray sales, "Avatar" will do...
If the film is amazing, it could easily make $100 million in DVD and Blu-Ray sales when it releases next year which is great.



I swear though, that "New Moon" bullshit is going to make so much money because of the hype. I hope the same goes for this flick.



If "Transformers 2" can make $800 million worldwide and $100 million in DVD/Blu-Ray sales, "Avatar" will do just as good if not better.
 
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AntoineDoinel
9:38AM on 11/10/2009 Add as a friend | MFC profile
It'll easily gross over $500M worldwide, so it'll get its money back. BUT, it'll need to gross twice that to be considered a success, that wont happen.
It'll easily gross over $500M worldwide, so it'll get its money back. BUT, it'll need to gross twice that to be considered a success, that wont happen.
 
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zohan
9:37AM on 11/10/2009 Add as a friend | MFC profile
i agree with: NJ Decepticon

this is the kind of movie i MIGHT see if i were bored and had nothing better to do. possibly a matinee, it's cheaper
i agree with: NJ Decepticon

this is the kind of movie i MIGHT see if i were bored and had nothing better to do. possibly a matinee, it's cheaper
 
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razgriz21
9:05AM on 11/10/2009 Add as a friend | MFC profile
Ouch
Talk about a money pit.
Talk about a money pit.
 
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NJ Decepticon
9:05AM on 11/10/2009 Add as a friend | MFC profile
This movie does not interest me at all. I have a feeling there are too many others like myself, and this movie will not make anywhere near enough to be considered successful on any terms.
This movie does not interest me at all. I have a feeling there are too many others like myself, and this movie will not make anywhere near enough to be considered successful on any terms.
 
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SCope07
9:04AM on 11/10/2009 Add as a friend | MFC profile
Interesting Thought
There's been talk going around the cinema circles about the death of movie theaters and it just dawned on me that the three (or four, can't remember) highest grossing films of all time have been in the last five years. It clearly means people are going to the theater. Just an interesting thought. As far as Avatar's success, I don't know but it doesn't look like a 300 million or 500 million...
There's been talk going around the cinema circles about the death of movie theaters and it just dawned on me that the three (or four, can't remember) highest grossing films of all time have been in the last five years. It clearly means people are going to the theater. Just an interesting thought. As far as Avatar's success, I don't know but it doesn't look like a 300 million or 500 million dollar movie and let's me down. The animation looks like plastic and is letting me down on the "realism" I was promised by Cameron.



We'll see I guess.
 
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Ocelot_Snake
7:41AM on 11/10/2009 Add as a friend | MFC profile
so this movie could make TDK bucks and still be pretty much a failure... camerons in trouble i think. this movie really doesnt interest the same number of people as TDK did or Titanic. had it been released in the summer its chances wouldve been better
so this movie could make TDK bucks and still be pretty much a failure... camerons in trouble i think. this movie really doesnt interest the same number of people as TDK did or Titanic. had it been released in the summer its chances wouldve been better
 
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Nachotroncoso
7:27AM on 11/10/2009 Add as a friend | MFC profile
Hey!!!
I liked Celine Dion's song!!! (But only the first 100 times of the 1.000.000 it has been played)
I liked Celine Dion's song!!! (But only the first 100 times of the 1.000.000 it has been played)
 
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CJN
5:02AM on 11/10/2009 Add as a friend | MFC profile
This movie will probably sell great as a bluray, later on.
This movie will probably sell great as a bluray, later on.
 
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nickula11
4:55AM on 11/10/2009 Add as a friend | MFC profile
Go JIM!
It'll make it back - this movie will be huge. Once the first group of people see this they'll tell everyone they know and everyone will see it and see it and see it. It looks like nothing out there at the moment and I guarantee this thing will kick ass.
It'll make it back - this movie will be huge. Once the first group of people see this they'll tell everyone they know and everyone will see it and see it and see it. It looks like nothing out there at the moment and I guarantee this thing will kick ass.
 
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jolanar
4:49AM on 11/10/2009 Add as a friend | MFC profile
I still don't understand all the hype for this movie, either way I'm sure it will make enough money in the long run (almost every movie does).
I still don't understand all the hype for this movie, either way I'm sure it will make enough money in the long run (almost every movie does).
 
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Bizzle
4:18AM on 11/10/2009 Add as a friend | MFC profile
in time
I guess it´ll make money in time... but not theatrical
I guess it´ll make money in time... but not theatrical
 
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machinelovers
3:52AM on 11/10/2009 Add as a friend | MFC profile
The visuals don't really mean shit in the long run. I've seen them in 3d and they look fantastic, but that's not what is going to determine what makes or breaks this film!



THE STORY WILL.
The visuals don't really mean shit in the long run. I've seen them in 3d and they look fantastic, but that's not what is going to determine what makes or breaks this film!



THE STORY WILL.