'Lightyear' Coming Summer 2022

[TwilightZone]

Sox is cute but he's no Minion, even if Soz merch becomes hot in the future I really, really doubt it will sell as well as any Minions merch made pre and post Rise of Gru hitting theaters.

 

[MisterPenguin]

So how does this work... does the $100-200M budget include the salary for the Pixar employees? The rental of the studio space etc.... or is the $100-200M in addition to the normal operating costs of the studio?

The extra 50% of budget is mostly the advertising budget which isn't included in the cost-to-make budget. Plus some administrative oversight fees.

I'm sure some films spend a lot more while others spend a lot less. It's just a rule of thumb since studios don't release exact numbers, but, its the rule of thumb the trade papers use to determine profitability of a film during its theatrical run. And by using the same calculus, films can be compared apples to apples.

So take the 'known' budget (how that becomes 'known' is a mystery to me, but the film's Wiki page will have it) and multiply it by 1.5 for the true cost of the film.

So, e.g., Lightyear's 'budget' is $200M. Multiply that by 1.5, and its true cost is $300M.

 

[TP2000]

Sox is cute but he's no Minion, even if Soz merch becomes hot in the future I really, really doubt it will sell as well as any Minions merch made pre and post Rise of Gru hitting theaters.

If Sox is barely a thing on Disney's own ShopDisney website, and the small amount of Sox merchandise now on sale at Target.com is heavily discounted only three weeks after the movie was released...

I don't think Sox merchandise has any risk of being in short supply for anyone who wants to buy it. At least until it all goes to the Disney Warehouse stores at 80% off by Labor Day.

 

[TP2000]

So how does this work... does the $100-200M budget include the salary for the Pixar employees? The rental of the studio space etc.... or is the $100-200M in addition to the normal operating costs of the studio?

There's also a whole lot of catered lunches. And six figure salaries for a bunch of Pixar employees working from home via Zoom (with Chardonnay in their coffee mugs) who actually have nothing to do with movie production but still have a job there for some reason. And the upkeep on the sprawling, lavish campus in Emeryville that few people now bother to show up to since they can now work from home via Zoom while drinking Chardonnay. And you also have to factor in the charge-offs for the Comp Days the 28 year old hipsters use when they get in a kerfuffle about the latest Social Justice issue and stage a "Walk Out!" that has nothing to do with making movies for American families with small children.

So... yeah. There's apparently a lot of overhead on that Emeryville campus. Plus lots of water for all that lawn.

 

[Sharon&Susan]

Yeah Sox is cute but I don't think there's anything special enough about the character to make him an enduring character. Most likely will end up being as remembered as Babu Firk.

 

[TP2000]

Yeah Sox is cute but I don't think there's anything special enough about the character to make him an enduring character. Most likely will end up being as remembered as Babu Firk.

Or a furrier version of VINCENT. Now half-off at Target.com!

 

[Screamface]

When Budgeting a film for PIXAR. Would PIXAR have a set cost to produce animated footage? Say $1 million per minute of animation. Where it doesn't actually cost PIXAR that, it's just their fee.

So those financing the film, have PIXAR's fee listed on the budget. Not an actually broken down budget of what is going on at PIXAR.

That fee of course wouldn't cover sound, voice actors, music and so forth.

 

[Brian]

Wow, Lightyear has really bombed.

I guess it didn't generate enough Buzz.

 

[TrainsOfDisney]

When Budgeting a film for PIXAR. Would PIXAR have a set cost to produce animated footage? Say $1 million per minute of animation. Where it doesn't actually cost PIXAR that, it's just their fee.

So those financing the film, have PIXAR's fee listed on the budget. Not an actually broken down budget of what is going on at PIXAR.

That fee of course wouldn't cover sound, voice actors, music and so forth.

That’s what I was wondering.... how much is Disney actually paying every year just so that Pixar exists?

It seems to me there should be a set budget and from that budget the studio is elected to make 1 film and so many shorts per year.

 

[Vegas Disney Fan]

So how does this work... does the $100-200M budget include the salary for the Pixar employees? The rental of the studio space etc.... or is the $100-200M in addition to the normal operating costs of the studio?

That’s an interesting question, depending on the website you look at Pixar has somewhere around 1300 employees and an average wage of about $90k, that’s $117 million a year just in salaries, figure several million more a month on campus costs, utilities, etc… I’d guess they spend $150 million a year just staying in business

They average 1 movie every 1-2 years so that 1 movie has to cover that $150 million plus all the voice actors and any other outside talent they need, my guess is the $200 million budget has to cover everything (employees, studio, actors) because at 1 film every year or 2 there’s no way they make enough otherwise to still be in business.

 

[Disney Irish]

Disney is a massive company with several flagship divisions. Animation is one of those divisions, and it sucks up huge amounts of capital to keep it running. A company needs to "fire on all cylinders" to stay healthy, especially when the cylinders require massive amounts of money to keep running.

My God, Pixar and Disney Animation are both spending between $150 Million to $200 Million per animated picture now! Where does all that money go, and how lavish are the catered lunches???

Minions Rise of Gru had a production budget of $80 Million, or roughly 40% of the budget for Lightyear. (I hate math, so correct me if I'm wrong on 40%). Using @MisterPenguin 's helpful analysis that a modern movie requires triple the production budget in box office to break even, Minions is going to make hundreds of millions of dollars for Universal. While Lightyear is going to cost Disney hundreds of millions of dollars.

Disney's fancy, flagship divisions need to be firing on all cylinders, especially as the new recession bites hard on American's budgets this summer and fall. Currently, Pixar and WDAS are sputtering and wasting huge amounts of money.

Well I’ve been here at Disneyland Resort, on my second day of a 3 day trip. I can say that I’ve seen no less than a couple hundred kids holding a Sox plushie. So it does appear that merch is being sold, and based the numbers I’ve personally seen it might be more popular than the box office or even your brief look at Target’s website is telling.

My point, so while Disney will probably lose $100-$200M or more at the box office from Lightyear, they’ll likely make it up in merch and other ways.

 

[MisterPenguin]

That’s an interesting question, depending on the website you look at Pixar has somewhere around 1300 employees and an average wage of about $90k, that’s $117 million a year just in salaries, figure several million more a month on campus costs, utilities, etc… I’d guess they spend $150 million a year just staying in business

They average 1 movie every 1-2 years so that 1 movie has to cover that $150 million plus all the voice actors and any other outside talent they need, my guess is the $200 million budget has to cover everything (employees, studio, actors) because at 1 film every year or 2 there’s no way they make enough otherwise to still be in business.

In the theatrical run, for all Pixar movies that had a wide theatrical release, the profit is $1.2 Billion. (Gross ticket sales were $15B.)

Don't forget the movies make money after their theatrical run on DVD, PPV, and merch. And they're a big selling point for D+ subs.

 

[TP2000]

Well I’ve been here at Disneyland Resort, on my second day of a 3 day trip. I can say that I’ve seen no less than a couple hundred kids holding a Sox plushie.

Hundreds of children are wandering around Disneyland right now carrying Sox stuffed animals?

That's... incredible.

I can't help but think they should have bought tickets to the movie instead.

 

[TP2000]

That’s an interesting question, depending on the website you look at Pixar has somewhere around 1300 employees and an average wage of about $90k, that’s $117 million a year just in salaries, figure several million more a month on campus costs, utilities, etc… I’d guess they spend $150 million a year just staying in business

They average 1 movie every 1-2 years so that 1 movie has to cover that $150 million plus all the voice actors and any other outside talent they need, my guess is the $200 million budget has to cover everything (employees, studio, actors) because at 1 film every year or 2 there’s no way they make enough otherwise to still be in business.

Great info and questions! Although I think the $117 Million in salaries is extremely low-balled. You have to also add in lots of money per employee that is paid in benefits and HR costs, plus payroll taxes, a perk-heavy industry used to getting lots of freebies and extras, etc. These are people who generally feel they are very, very special, remember.

And the campus costs and upkeep must be massive. It's one of those stereotypical swanky Bay Area campuses with gyms and free/subsidized on-site meals, free/subsidized personal services, etc. Not to mention the water bill for all that lovely green lawn during a drought.

Don't forget the movies make money after their theatrical run on DVD, PPV, and merch. And they're a big selling point for D+ subs.

Are DVD sales really a key profit driver for studios in the 2020's and beyond? The DVD section used to take up multiple aisles at Best Buy and Target, but now DVD's are reduced to just a few endcaps or one small shelving section in those stores. Who is still buying recent Hollywood movies on DVD in great quantity?

(I do occasionally purchase a DVD, but randomly of some obscure title I have hazy memories of from my youth. Latest purchase on Amazon was the modestly successful Sinatra/Martin comedy "Marriage On The Rocks" from 1965. It's kind of funny, but it really helps if you watch it while having several cocktails.)

I just can't imagine DVD sales being a growth industry and profit center for the 2020's.

 

[TwilightZone]

I can say that I’ve seen no less than a couple hundred kids holding a Sox plushie

I wonder how many of those kids recognize where Sox is from. Actual advertising for Lightyear has been sparse enough that it's easy to imagine a kid not seeing a single ad or promotional tie in for Lightyear.

 

[TP2000]

I had to go Google up info on DVD sales, after thinking more about how hardly anyone buys them anymore.

This business article is from 2019, based on info that is now more than three years old and well before Disney+ began, and DVD sales had already dropped 86% industry-wide.

The death of the DVD: Why sales dropped more than 86% in 13 years

DVD sales have been on the decline for over a decade, but a slew of new streaming services and a shift in how consumers are watching movies and TV shows could be the final death knell for the technology.

www.cnbc.com

 

[TwilightZone]

Great info and questions! Although I think the $117 Million in salaries is extremely low-balled. You have to also add in lots of money per employee that is paid in benefits and HR costs, plus payroll taxes, a perk-heavy industry used to getting lots of freebies and extras, etc. These are people who generally feel they are very, very special, remember.

And the campus costs and upkeep must be massive. It's one of those stereotypical swanky Bay Area campuses with gyms and free/subsidized on-site meals, free/subsidized personal services, etc. Not to mention the water bill for all that lovely green lawn during a drought.



Are DVD sales really a key profit driver for studios in the 2020's and beyond? The DVD section used to take up multiple aisles at Best Buy and Target, but now DVD's are reduced to just a few endcaps or one small shelving section in those stores. Who is still buying recent Hollywood movies on DVD in great quantity?

(I do occasionally purchase a DVD, but randomly of some obscure title I have hazy memories of from my youth. Latest purchase on Amazon was the modestly successful Sinatra/Martin comedy "Marriage On The Rocks" from 1965. It's kind of funny, but it really helps if you watch it while having several cocktails.)

I just can't imagine DVD sales being a growth industry and profit center for the 2020's.

Collectors LOVE DVDs and Blurays but I can't see any die hard movie collector wanting to pick up Lightyear.
It is also good for the budget-minded family now there's more streaming services than the amount of fingers on a hand, but I have seen more and more companies move away from the bluray release format for family films, especially Paramount.

 

[TP2000]

I wonder how many of those kids recognize where Sox is from. Actual advertising for Lightyear has been sparse enough that it's easy to imagine a kid not seeing a single ad or promotional tie in for Lightyear.

I wonder if it's not just the same child carrying that Sox stuffed animal, and he's been stuck in the Matterhorn Standby queue switchbacks for several hours, and so every time he passes the same child he's counting it as another Sox sighting?

 

[TP2000]

Collectors LOVE DVDs and Blurays but I can't see any die hard movie collector wanting to pick up Lightyear.
It is also good for the budget-minded family now there's more streaming services than the amount of fingers on a hand, but I have seen more and more companies move away from the bluray release format for family films, especially Paramount.

I too have been saddened that BluRay releases are now few and far between. I was buying a lot of them a decade ago of favorite classic movies from the mid 20th century, but now they're hard to find. I'm thrilled to have All About Eve, Valley of the Dolls, Guess Who's Coming To Dinner, etc., etc. all on BluRay.

But I wish the studios would keep it up, even in limited numbers for us collectors. Well, I'm not a "collector", I'm just an oddball with questionable taste in movies. Even the more expensive BluRay format doesn't seem to pencil out for the studios now. But just try finding Airport '75 streaming anywhere! I can't!

 

[tcool123]

Even the more expensive BluRay format doesn't seem to pencil out for the studios now. But just try finding Airport '75 streaming anywhere! I can't!

You still have the option to rent or purchase the film if you'd like