Disney Analyst
Well-Known Member
Black Panther steadily climbing for 2022 box office. Number 8 in less than 3 weeks.
What?Disney finances its film itself, doesn't it?
They probably just overcharge themselves for making the film. So the expenditure of the budget flows back to the company as profit. While still being owed the full about from the movie production.
The way films are made is quite complicated. Marvel doesn't just make the film.What?
I understand what you're saying, its why Hollywood math is always so "fuzzy".The way films are made is quite complicated. Marvel doesn't just make the film.
They create a company as a separate legal entity to make the film. Which then licences the rights from a holding company. I assume Marvel/Disness finance the films themselves. So they then lend the company the money to make the film.
That company then hires the production company, which is Marvel Studios to make the film. Marvel Studios is its own for-profit entity. So their fee for production is for profit. Which is how they can overpay themselves. I assume they probably have a high base cost for a Marvel film which they charge for all Marvel films. 3 months of studio time, crew, catering, etc. Separate from unique parts of the production like actors, directors, locations VFX and so forth.
So some of the budget is flowing back to the parent company, yet they are still owed the total amount lent. Which if there's a loss can be used for tax purposes. It's all tricky and complicated.
The way films are made is quite complicated. Marvel doesn't just make the film.
They create a company as a separate legal entity to make the film. Which then licences the rights from a holding company. I assume Marvel/Disness finance the films themselves. So they then lend the company the money to make the film.
That company then hires the production company, which is Marvel Studios to make the film. Marvel Studios is its own for-profit entity. So their fee for production is for profit. Which is how they can overpay themselves. I assume they probably have a high base cost for a Marvel film which they charge for all Marvel films. 3 months of studio time, crew, catering, etc. Separate from unique parts of the production like actors, directors, locations VFX and so forth.
So some of the budget is flowing back to the parent company, yet they are still owed the total amount lent. Which if there's a loss can be used for tax purposes. It's all tricky and complicated.
Lol everything he's saying is nonsense. There are no circular payments within and between various legal entities owned by The Walt Disney Company intended to inflate production costs for... reasons? Disney controls both sides of the ledger because almost all of their subsidiaries are wholly owned. You can't create "profit" on one ledger out of thin air because that would also create "loss" on another ledger, which you also own. Intercompany transactions are eliminated when consolidating entities report financial results. He also ignores the fact that you have to, you know, PAY all the friggin people.I understand what you're saying, its why Hollywood math is always so "fuzzy".
Um, you do know it was a joke right?Lol everything he's saying is nonsense. There are no circular payments within and between various legal entities owned by The Walt Disney Company intended to inflate production costs for... reasons? Disney controls both sides of the ledger because almost all of their subsidiaries are wholly owned. You can't create "profit" on one ledger out of thin air because that would also create "loss" on another ledger, which you also own. Intercompany transactions are eliminated when consolidating entities report financial results. He also ignores the fact that you have to, you know, PAY all the friggin people.
Then please explain so I can learn.
Lol everything he's saying is nonsense. There are no circular payments within and between various legal entities owned by The Walt Disney Company intended to inflate production costs for... reasons? Disney controls both sides of the ledger because almost all of their subsidiaries are wholly owned. You can't create "profit" on one ledger out of thin air because that would also create "loss" on another ledger, which you also own. Intercompany transactions are eliminated when consolidating entities report financial results. He also ignores the fact that you have to, you know, PAY all the friggin people.
But Disney doesn't go out and solicit third party investment (aside from something like product placement). The investment comes from under the same corporate umbrella.Help me understand. Each film involves the creation of its own legal entity as a production company to make the film. So they create Black Panther 2 LLC or whatever it's called.
They then get the investment to make the film and have to contract out the resources to make the film.
But Disney doesn't go out and solicit third party investment (aside from something like product placement). The investment comes from under the same corporate umbrella.
So if there's +250 million on Black Panther 2 LLC, there's a (250) million on Buena Vista Productions LLC or whatever.
There are some youtube reports out now that MCU will cut back on releases per year again, to be able to spend more quality time and less burden on resources. No formal announcement has been made, but to your point, that would allow them to better clean up effects and spend more time doing quality filmingI feel bad for the computer effects crews. I think they are vastly overworked and it is causing the effects to look worse in the process. Marvel seems to use effects even when they don't need to. You don't have to use it for everything in the film. It should mostly be used for the backgrounds and the times where it's absolutely necessary. They probably wouldn't have a character hold a real coke.
For example on the latter Avengers movies, most of their surroundings and a lot of the characters weren't real. Spiderman didn't even wear a real outfit for most of the movie. For some reason even that was created in post.
Then you have turds like Taika Waititi openly mocking the poor effects crew. Even though he made a mockery of his most recent outing.
There are some youtube reports out now that MCU will cut back on releases per year again, to be able to spend more quality time and less burden on resources. No formal announcement has been made, but to your point, that would allow them to better clean up effects and spend more time doing quality filming
It has already passed the other marvel movies this year this point in their runs…to me it looks like one billion is it’s grasp by the end of BP2’s runMeh, that's not that good compared to most Marvel films. If Wokeanda doesn't reach 750 million it has failed and Disney only has itself to blame for it.
Wokeanda
So as everyone is distracted with Strange World lackluster box office, Wakanda Forever is still raking it in.
As of the end of this weekend it looks to have pulled in $675.5M globally. With several more weeks before Avatar it has a good shot of breaking $1B globally. We'll see what it does, but even if it comes close like Strange 2 it'll still be a winner at the box office.
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