Mission: Impossible 7 and Indiana Jones 5 are having financial difficulties because of their large budgets.
Even well-established heroic heroes like Indiana Jones and Ethan Hunt are not immune to the film industry’s shifting sands. Harrison Ford and Tom Cruise brought their action-packed adventures to the big screen in Disney’s “Indiana Jones and the Dial of Destiny” and Paramount’s “Mission: Impossible – Dead Reckoning Part One,” respectively, in the hopes that the films’ potent blend of escape and fond memories would boost the box office. But both pictures ended up being among the worst disappointments of the summer, and a large part of the blame can be placed on their hefty budgets.
“Indy 5”, which debuted in late June, has managed to bring in $375 million worldwide after six weeks, while “MI7,” which debuted in July, has made $523 million after five. The recent films have acceptable ticket sales, especially considering that they are a part of long-running franchises designed to maintain the interest of devoted fans.
The issue is that each sequel cost about $300 million before at least $100 million was spent on marketing. They rank among the most expensive films ever produced as a result. Despite the lofty hopes, they might lose roughly $100 million on their theatrical performance alone if the results don’t live up to expectations.
Sean Robbins, the head box office analyst at BoxOffice Pro, claims that these films would be far more affordable if it weren’t for Covid. However, just because their budgets were boosted doesn’t change the reality that, in the end, these films cost what they did and gave audiences what they gave audiences.
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Studio executives gripe in secret that evaluating a movie’s profitability solely based on its box office performance ignores how much it earns from licencing deals for cable and streaming services. Beyond their box office numbers, studios don’t publicly disclose how much money films make. However, it is anticipated that these sources of income would ultimately increase the value of “Dead Reckoning Part One” and “Dial of Destiny” through their ticket sales. For instance, Disney CEO Bob Iger recently observed that, despite the studio’s efforts to cut costs, the development of “Dial of Destiny” helped boost interest in the “Indiana Jones” films on Disney+.
According to Jeff Bock, an analyst at Exhibitor Relations, “there is an opportunity to make money back with streaming and other sales, but it’s a long game, not a short one.” “They don’t expect to turn a profit in 25 years.”
When it comes to “Dead Reckoning Part One,” individuals familiar with the financial modelling for the movie indicate that even with a global box office gross of up to $600 million, it will fall short of projections. This will result from a longer running time, accounting for home entertainment and licencing income, and including Cruise’s percentage of the gross revenue. He is one of the few actors who still get advance payments before a film even opens in theatres.
But films like “Mission: Impossible” and “Indiana Jones” are made to make unexpected money on a $100 million order. The previous “Indiana Jones” adventure, “Kingdom of the Crystal Skull,” released in 2008, generated a staggering $790 million worldwide and is still the franchise’s highest-grossing movie, not accounting for inflation. “Top Gun: Maverick,” which demonstrated Cruise’s continuing appeal to a new generation with death-defying thrills, generated billions in 2022. The previous “Mission: Impossible” installment, 2018’s “Fallout,” grossed a franchise-best $791 million.
The sad truth is that in order to be profitable, blockbuster films must take calculated risks. In spite of generating $704 million globally at the box office in this hot climate, Universal’s high-octane “Fast X,” whose production budget was $340 million, is barely able to turn a profit and is anticipated to produce only small gains, according to sources familiar with its financials.
All of this is qualified by a sizable asterisk. Due to pandemic-related safety precautions and postponed release dates, production costs have skyrocketed. Additionally, the two key markets of China and Russia are still unstable at best and unreliable at worst, which is hurting the worldwide box office. For instance, China invested $181 million in “Fallout,” compared to $48.2 million for “Dead Reckoning Part One”. The lack of a global audience has made it difficult for films of all sizes to earn at pre-pandemic levels. Only four films have earned more than $700 million (so far) in 2023, compared to eight in 2022, five in 2021, and none in 2020. In comparison, there were 12 in 2019 and 9 in 2018.
It’s unfortunate that despite looser regulations in the Covid age, making films is not getting any less expensive. Several big tentpole films due for release in 2024 and later may miss its scheduled release dates as a result of the Hollywood double workers’ strike, which has halted production. Some studio executives hypothesise that films currently in development when actors staged a walkout in July experienced a monthly increase in production expenses of up to $2 million. However, winners receive a cut of the rewards even at the box office. Numerous them have experience with intellectual property.
Christopher Nolan’s “Oppenheimer,” which is predicted to be very profitable, has already reached $650 million in ticket sales against a $100 million budget. Then there is Greta Gerwig’s “Barbie,” which cost about $145 million to make and has grossed a total of $1.18 billion in revenue worldwide. It will shortly overtake “The Super Mario Bros. Movie” as the highest-grossing title of 2023.
The caption on the box reads, “‘Barbie’ was made for less than $150 million.” When you pass the $1 billion mark at the box office, that is the price point you want to see.
Not just Warner Bros., which distributed the movie, benefited from its success. Three internal sources estimate that Margot Robbie, who produced the movie and brought Barbie to life on screen, will get at least $50 million in salary and bonuses. It’s enough to purchase your dream home in Malibu.
