Dwayne Johnson DC photo to benefit ‘Black Adam’: Here’s how

There is snorkeling out there Black Adam is about to lose $50 million to $100 million, and that’s just not true. Deadline film financing sources, people who make a living out of it, and those close to the film say that this film will undoubtedly break even and be in the black. Scroll down to see how.

With a worldwide gross of $390 million, a production cost of $195 million and P&A costs ranging from $80 million to $100 million, the Dwayne Johnson DC/New Line film aims to do just that $52 million – $72 million.

An additional source of funds is also not included in this amount Black Adam fan shop

All of that, including a B+ CinemaScore, is good enough Black Adam to be a franchise starter (read: the first Captain America $370 million WW earned). We’ll know more about how the DC Universe will evolve early next year when the studio’s new heads, Peter Safran and James Gunn, announce the news.

Black Adam Called Johnson’s biggest solo opening in the United States at $67 million, clearly one of the financial models that Warner Bros. had in mind when he drew up the income statement for the film. In a very dry autumn market with no tent poles due to the post-production lockdown caused by Covid, Black Adam was the biggest movie of the season and was #1 worldwide for three consecutive weeks, ahead of Disney/Marvel Studios Black Panther: Wakanda Forever arrived

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“I have read the allegations Black Adam will lose money. That’s not true,” explains producer and financier Joe Singer, who is heavily involved in film financing. “The picture can be considered disappointing considering that Dwayne Johnson was in a DC film. However, the picture will be balanced and give away some profit.

Previously Black Adam as big as Hobbs and Shaw, which made an $84 million profit after all that extra business? No, but you have to remember it Fast & Furious Russia seceded and did not face headwinds from a strong dollar abroad. Hobbs and Shaw also had the benefit of China, where Johnson is big, the film grossed $201 million (note that the return on theatrical rentals to the US is only about 25% and there is no home market in the PRC). China has marginalized several US blockbuster titles in the wake of Covid. These factors could not be predicted when Black Adam got the green light.

work indoors Black AdamUniversal’s favor is a more frugal marketing budget than Universal’s $140 million Hobbs and Shaw. how is it Intense cost-cutting is underway at Warner Bros. Discovery, which is heavily in debt and undergoing layoffs. Black Adam has spent most of its digital marketing spend on linear marketing, fired from Johnson’s massive social media megaphone, which has a reach of nearly half a billion followers across TikTok, Instagram, Twitter and Facebook.

Also consider shorter theatrical releases these days, which allow the studio to stretch its marketing budgets. PVOD for the film comes at a time when the film is still in theaters and outdoor advertising is still there. Black Adam drops on HBO Max on December 16 after a 57-day run, a frame long enough to maximize box office, PVOD and resale dollars. The swing factor makes up the net profit Black Adam: Warners claims it spent $80 million on worldwide P&A, giving the film a $72 million surplus, while the $100 million claimed by other sources gives the film a $52 million profit.

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I understand Johnson’s deal was not as aggressive as his previous deals (read: Red notice). He received his $20 million advance and according to our numbers, he is making a profit that is close to zero. There is a 40% prize pool shared by director Jaume Collet-Serra, producers of the film Beau Flynn and Seven Bucks, Talent and Johnson being the largest participant with more than 10%. This comes out of the net of $52 million. This community pool comes into effect after the studio breaks even. Nobody there Black Adam first dollar gross, in our opinion.

Production cost of $195 million includes studio interest expense at a low operating rate of 2%. Adding to the film’s total cost of $338 million are waste streams and home entertainment costs. The fee that Warner Bros. paid for sending the picture to HBO Max is included in Home Entertainment’s $86 million revenue. At that gross level, domestic pay television, which is PVOD, brings in $36 million.

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“Successors and franchises are the lifeblood of our business,” Singer added, “they have a lower risk profile and overall higher value.” The fact that there are discussions about a Black Adams Next, learn how a studio builds sustainable value over the long term.