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MGM books loss on 'Dragon Tattoo,' expects profit on '21 Jump Street'
Returns of $231 million in worldwide box office wasn't enough to turn a profit on "The Girl With the Dragon Tattoo."
Metro-Goldwyn-Mayer disclosed in financial results released this week that it is booking what Co-Chief Executive Gary Barber called a "modest loss" on the film. On a conference call with shareholders, he said the independent studio, which covered 20% of the approximately $100-million production budget for the movie co-financed and distributed by Sony Pictures, needed "Dragon Tattoo" to collect about 10% more revenue in order to break even.
As a result, he said that while talks with Sony are ongoing for a potential sequel based on the second book in the "Millennium" trilogy by author Stieg Larsson, MGM would participate only "assuming we can achieve better economics" -- Hollywood-speak for a lower budget.
"Dragon Tattoo" was the first movie in which MGM invested after it emerged from bankruptcy in late 2010 under Barber and co-CEO Roger Birnbaum. The second, "21 Jump Street," which was also co-financed with Sony, hit theaters Friday and looks like a success. Barber said that based on opening weekend box office of $36 million, MGM expects the relatively inexpensive action-comedy starring Jonah Hill and Channing Tatum to be profitable. He added that his studio plans to participate in the sequel, in development at Sony.
Although MGM is a private company, it has a broad base of shareholders and reports quarterly financial results to them, as well as holding a conference call to discuss the state of its business.
In 2011, MGM reported operating income of $79 million on $699 million in revenue. The company did not provide comparable results for the full year of 2010.
The filings indicated that 57% of MGM's revenue came from television distribution, primarily of its library of 4,100 movies and 10,500 television episodes. The company has identified international TV sales as a key growth opportunity and last year signed new deals in Germany, Spain, Portugal and the Netherlands.
The company also said 27% of its revenue came from DVD and Blu-ray sales.
In the current year, MGM expects to see revenue grow significantly, largely due to its 50% interest in fourth-quarter releases "The Hobbit: An Unexpected Journey" and "Skyfall," the newest title in the studio's long-running James Bond franchise. Operating income will probably decline, Chief fFnancial Officer Dean Stratton said, due to increased costs for marketing and production.
MGM is in preproduction on the first two movies it has developed under Barber and Birnbaum: remakes of the 1987 action film "Robocop" and the 1976 horror film "Carrie," based on Stephen King's novel. Both are expected to be released next year.
Barber also noted that MGM is looking to shift its capital away from linear channels that the company owns -- television channels that play old MGM movies, for example -- and towards new opportunities in digital distribution. "We are actively exploring [joint venture] and investment opportunities. We're very bullish about our digital opportunities around the globe," he said.
Though MGM stock is not publicly traded, one person knowledgeable about the shares but not authorized to discuss them publicly said the price increased from $24 to $26 per share after financial results were released Tuesday. That gives the studio a total value of about $1.7 billion, the person said.
http://latimesblogs.latimes.com/entertainmentnewsbuzz/2012/03/mgm-books-loss-on-dragon-tattoo-expects-profit-on-21-jump-street.html
Metro-Goldwyn-Mayer disclosed in financial results released this week that it is booking what Co-Chief Executive Gary Barber called a "modest loss" on the film. On a conference call with shareholders, he said the independent studio, which covered 20% of the approximately $100-million production budget for the movie co-financed and distributed by Sony Pictures, needed "Dragon Tattoo" to collect about 10% more revenue in order to break even.
As a result, he said that while talks with Sony are ongoing for a potential sequel based on the second book in the "Millennium" trilogy by author Stieg Larsson, MGM would participate only "assuming we can achieve better economics" -- Hollywood-speak for a lower budget.
"Dragon Tattoo" was the first movie in which MGM invested after it emerged from bankruptcy in late 2010 under Barber and co-CEO Roger Birnbaum. The second, "21 Jump Street," which was also co-financed with Sony, hit theaters Friday and looks like a success. Barber said that based on opening weekend box office of $36 million, MGM expects the relatively inexpensive action-comedy starring Jonah Hill and Channing Tatum to be profitable. He added that his studio plans to participate in the sequel, in development at Sony.
Although MGM is a private company, it has a broad base of shareholders and reports quarterly financial results to them, as well as holding a conference call to discuss the state of its business.
In 2011, MGM reported operating income of $79 million on $699 million in revenue. The company did not provide comparable results for the full year of 2010.
The filings indicated that 57% of MGM's revenue came from television distribution, primarily of its library of 4,100 movies and 10,500 television episodes. The company has identified international TV sales as a key growth opportunity and last year signed new deals in Germany, Spain, Portugal and the Netherlands.
The company also said 27% of its revenue came from DVD and Blu-ray sales.
In the current year, MGM expects to see revenue grow significantly, largely due to its 50% interest in fourth-quarter releases "The Hobbit: An Unexpected Journey" and "Skyfall," the newest title in the studio's long-running James Bond franchise. Operating income will probably decline, Chief fFnancial Officer Dean Stratton said, due to increased costs for marketing and production.
MGM is in preproduction on the first two movies it has developed under Barber and Birnbaum: remakes of the 1987 action film "Robocop" and the 1976 horror film "Carrie," based on Stephen King's novel. Both are expected to be released next year.
Barber also noted that MGM is looking to shift its capital away from linear channels that the company owns -- television channels that play old MGM movies, for example -- and towards new opportunities in digital distribution. "We are actively exploring [joint venture] and investment opportunities. We're very bullish about our digital opportunities around the globe," he said.
Though MGM stock is not publicly traded, one person knowledgeable about the shares but not authorized to discuss them publicly said the price increased from $24 to $26 per share after financial results were released Tuesday. That gives the studio a total value of about $1.7 billion, the person said.
http://latimesblogs.latimes.com/entertainmentnewsbuzz/2012/03/mgm-books-loss-on-dragon-tattoo-expects-profit-on-21-jump-street.html
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Comments
Helping the budget for the next films is having the sequels filmed back-to-back. That should help save some money at least.
I don't understand either, but I have to tell you the film is brilliant (watch it)!!!
A reason for not making so much money might have been the "feel-bad movie of Christmas" tag, what was an atractive to some people (me, for example) might have put a lot of people off.
That's why the last two parts won't be released at Christmas. As Sony have said, that could have been a mistake from the off.
Having the trilogy will pay dividends in the future if not now. The whole story will sell better than just one part. In the long run the series will be profitable so it's worth sticking with for MGM, if they choose to.
Lessons have been learned for this film, that's for certain.
I don't want to make assumptions but from this side of the pond it appears that Americans don't appreciate a film unless it's remade with more explosions. Apologies to any Americans on here because I know that is a generalisation.
Although I have no desire to see Let The Right One In remake as the original gave me all I need whereas TGWDT Swedish version was a good film I felt it had room for improvement and considering the director of that film blatantly took influence from David Fincher, then who better to attempt the U.S adaptation.
Did you read the books? There's one explosion, and that's it. I'm sure it's the same for the American version.
Was that seriously a tagline for the film?!
Yeah I did, I was generalising with the 'explosion' line, not being specific to either film I mentioned. My point was that not everything has to be remade. You can sometimes learn something from different cultures and their art, in this case 'film'.
Sometimes remakes are truly good though, so when they are good it's worth all the shite that Hollywood pumps out yearly. I don't see this as a remake at all. The Swedish film was an adaption of the book as this one is. No remakes here in my eyes considering how they differ.
I can't think of a Hollywood remake of foreign film that improves on the original significantly. I'm sure there are some.
I know quite a lot of people who had seen the Swedish tv show concerning the Stiegson books and couldn't be bothered to see the movie. To make matters worse they ran a repeat on the telly again in the week they premiered the movie in the Netherlands. That must have hurt the BO.
And how is it costing $100m FFS? It just looked like a glossy TV film (which is where it should have stayed). Rooney Mara is a nobody so it must be Fincher and DC who are pocketing the lions share of that. I suppose the location shooting is pretty extensive but then the BBC managed it with Kenneth Brannaghs Wallender and I doubt they spent more than a few million. Sounds like someones shafted MGM somewhere along the line. Serves them right though releasing the film about 2 years after Larsson mania had peaked.
RC7 makes a good point. Nikita, The Vanishing, Les Diaboliques - Hollywood remakes just because your average Yank is too stupid to be able to read for two hours (another generalisation bordering on racism so feel free to berate me if you dont hail from Dubya heartlands. Although you cant change the fact that that is the reason said remakes are made) are always nowhere near the original. Mind you remakes of foreign films is one thing - its the ones that are in English already that beggar belief. Get Carter, The Wicker Man and the Italian Job anybody?
Spot on.
as an american moviegoer - and also an aspiring filmmaker, i do take small offense to that personally, but you aren't totally wrong either..
in terms of summer blockbusters - it seems explosions, and gratuitous sex appeal does in fact "appeal" to the masses - but myself, and a vast majority of others do in fact like story, plot, character development and etc to be in their films.... remakes are permissible IMO, just as long as they are done with respect, and not to simply milk a fanbase.... because in reality, remakes are nothing new to cinema - it's been going on since the 40s and 50s - is there more now? yes - because greedy studio execs are willing to invest on what is "proven" rather than take risks anymore, which is sad - kind of reminds me of the cinema scene in the 60s.
Fincher did shoot almost a year, which ups the costs all by itsself. I hope for another director and making them back to back on a budget of 100 Mill together, they should be fine. Also the swedish sequels were far from being as loved as the first one, so not that many people saw it. Would give these some sort of "fresh" stamp IMO.
Yes, attached to the first trailer.
In the promotion there focus a lot on the original series and Daniel Craig. Last couple of years there be more movies in the 3 million region, but if you look back to 2005 or 2002 there be more movies under the 3 million. 2,5 is not something to shame about and i don't whant call this movie a flop.
Now it be inportent that Daniel Craig start filming or already doing after Skyfall for the sequel for a release in the third week of August or first week of September 2013. Then Bond 24 for November / December and final part of millenium trilogy for August/September 2015. 2 years-2 years 2 months for release in December-Februari 2014 is option too and then part 3 in December-February 2016. In both cases Bond 24 in 2014 and Bond 25 release in 2016 is not a problem. Bond 25 always been can give in 2017.
It actually only took nine months to film but I agree with you point. You don't want a one and a half year shoot for the sequels, if one can help it.
The Golden Compass made 350 Mill worldwide, but not enough in the US and New Line was stupid enough to sell the majority of the worldwide gross for the US gross, so they ended up with a loss, even though the film was successful.
The other two The Golden Compass won't happen but Craig and Mara are on board for The Girl Who Played With Fire which will start filming at the end of the year.
Says who? Nothing is confirmed yet. Would be happy, if you were right though...
http://www.deadline.com/2012/01/sony-going-ahead-with-dragon-tattoo-sequels-despite-underperforming-box-office/
But they’re looking to start shooting #2 by the end of this year/beginning of next.
AHHHHHH!!!! NOT THE BEES!!!!! worst nick cage film ever. But I loved the original.
But I haven't seen the original tatoo or the new one, or read the books though so I can't really say anything about this.