Study: 'Da Vinci' tops summer profitability
'Code' tops season
SepT 23, 2006
NEW YORK -- "The Da Vinci Code" outperformed boxoffice record-breaker "Pirates of the Caribbean: Dead Man's Chest" in terms of profitability this summer, according to a study released Friday by Kagan Research.
Sony Pictures' "The Da Vinci Code" should generate nearly $1.2 billion in worldwide revenue, according to Kagan estimates. It cost $367 million to produce and market. Disney's "Pirates" should generate more overall revenue, or about $1.8 billion by Kagan estimates, but cost an estimated $75 million, or 17%, more to produce and an additional $25 million or 10% more to market than "Da Vinci."
Of "Da Vinci," Sony chairman of worldwide marketing and distribution Jeff Blake said, "It was a marketing group's dream, coming out of the gate with so much interest in Dan Brown's story."
A major objective throughout Sony's studio business, is to curb marketing costs by "looking at all the assets we have from the ground up -- be they great source material, a star like Tom Hanks, or a director with total credibility like Ron Howard -- then translate them into savings," Blake said.
While $467 million in marketing and production expenses diluted "Pirates' " net earnings, Disney/Buena Vista Pictures had two more titles that ranked in Kagan's top five most-profitable summer films list: "Cars," at No. 3, and "Step Up" at No. 5.
In recent quarters, Wall Street analysts have remained bullish on Disney's stock, despite slowing business at its theme parks, thanks to the strength of its studio entertainment segment.
Fox Searchlight's "Little Miss Sunshine" came in at No 4 on the most-profitable list. Acquired in a bidding war at January's Sundance Film Festival by the specialty division of 20th Century Fox for $10 million, "Sunshine," by Kagan's estimates cost $8 million to produce, 15 times less than "Da Vinci," and 25 times less than "Pirates."
"Big glossy studio films generate huge revenue in DVD and on TV," Kagan Research analyst Wade Holden said. "Some say moderate and low-budget films ... are a better economic bet. But (indie films) don't do proportionally as well in video and TV, especially when they don't garner top awards."
The least-profitable films of the summer were New Line's bottom-ranked "Hoot," Sony Pictures' "Zoom" in next to last and Fox's "My Super Ex-Girlfriend," as the third-least profitable film of the season.
Kagan based its study on 48 films released on more than 800 screens and playing in theaters this summer. The study forecast distributor revenue from all sources worldwide (including downstream video and TV).
Sony Pictures' "The Da Vinci Code" should generate nearly $1.2 billion in worldwide revenue, according to Kagan estimates. It cost $367 million to produce and market. Disney's "Pirates" should generate more overall revenue, or about $1.8 billion by Kagan estimates, but cost an estimated $75 million, or 17%, more to produce and an additional $25 million or 10% more to market than "Da Vinci."
Of "Da Vinci," Sony chairman of worldwide marketing and distribution Jeff Blake said, "It was a marketing group's dream, coming out of the gate with so much interest in Dan Brown's story."
A major objective throughout Sony's studio business, is to curb marketing costs by "looking at all the assets we have from the ground up -- be they great source material, a star like Tom Hanks, or a director with total credibility like Ron Howard -- then translate them into savings," Blake said.
While $467 million in marketing and production expenses diluted "Pirates' " net earnings, Disney/Buena Vista Pictures had two more titles that ranked in Kagan's top five most-profitable summer films list: "Cars," at No. 3, and "Step Up" at No. 5.
In recent quarters, Wall Street analysts have remained bullish on Disney's stock, despite slowing business at its theme parks, thanks to the strength of its studio entertainment segment.
Fox Searchlight's "Little Miss Sunshine" came in at No 4 on the most-profitable list. Acquired in a bidding war at January's Sundance Film Festival by the specialty division of 20th Century Fox for $10 million, "Sunshine," by Kagan's estimates cost $8 million to produce, 15 times less than "Da Vinci," and 25 times less than "Pirates."
"Big glossy studio films generate huge revenue in DVD and on TV," Kagan Research analyst Wade Holden said. "Some say moderate and low-budget films ... are a better economic bet. But (indie films) don't do proportionally as well in video and TV, especially when they don't garner top awards."
The least-profitable films of the summer were New Line's bottom-ranked "Hoot," Sony Pictures' "Zoom" in next to last and Fox's "My Super Ex-Girlfriend," as the third-least profitable film of the season.
Kagan based its study on 48 films released on more than 800 screens and playing in theaters this summer. The study forecast distributor revenue from all sources worldwide (including downstream video and TV).
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