I read that they need $400M to break even on John Carter. What's the correct number?
Caveat 1: 'Hollywood accounting' is built to obfuscate the true tallies of such things so that media companies don't have to pay out huge royalties. Companies are going to 'spin' budget numbers to serve an interest that may or may not be reflective of the truth and may either over-inflate or underestimate the true profit, depending on the structures of the royalty and distribution deals, the mood of the market, shareholder interests, etc.
Caveat 2: Remember that breaking even is still kinda, sorta a disaster for a big budget epic that costs hundreds of millions of dollars. Remember that an investment like this is an
opportunity cost -- Disney took money it could have potentially put to produce uses elsewhere. If you put 250 million in the bank from back when John Carter got greenlit 3-4 years ago and got 3% ROI every year, you'd make 30 million just on interest alone (I'm not claiming Disney spent all 250 million upfront, mind you). The point is when a big media company outlays 250 million dollars over 4 years and gets 250 million back, that's still a decent sized loss, relative to what they could have invested the money on instead. So nominally breaking even is still a loss.
Caveat 3: Remember that Disney doesn't get every dollar of box office. Movie theaters take a cut. Promotions have to be done.
The *general rule* is that the movie's producer is going to get 50-60% of the box office...so, assuming a $250 million outlay, Disney would need to generate $400-$470 million to break even, true enough. Now, there are other revenue streams: licensing, toys, other merch, secondary distribution channels later on like DVD/Blu (an eroding market), OnDemand, airplane, etc. But that's *not* counting promotional costs (probably $100+ mil on a huge picture like this) and as I said, doesn't count opportunity lost. And now, what a bomb like this might do to the share price/market value of the company...
So the accounting is hard. Needless to say, spend $250 million on a movie, you need to make ALOT back.