Why do we say that the latest James Bond film “No Time To Die” must generate $900 million to cover its costs?

No Time To Die will certainly go down in cinema history as the most unintentionally expensive film in history…

The film was originally scheduled to be released in November 2019, but the pandemic led to a series of postponements.

For a big budget film, like James Bond, this is a big deal.

On the one hand, studios generally borrow part of the production budget, which means they pay late interest if the film is not released on time. In the case of No Time To Die , late payment interest would amount to $1 million per month of delay…

Furthermore, delaying the release by two years led to problems with the film’s many sponsors. Certain product placements (brands seen on screen) became obsolete over time and it was necessary to reverse certain scenes by removing the products in question. This resulted in considerable additional costs for the studio.

As the film prepares to be released, its production costs rise to a staggering $314 million.

To this amount, we must naturally add marketing costs, which are estimated, globally, at $150 million. No Time To Die therefore arrives in cinemas at a price of 464 million dollars…

To cover its costs, the MGM studio must therefore generate approximately $928 million in revenue.

Why so much? Because the studio only earns half the price of the cinema ticket. The other half goes to the operators (the theaters)…

Before reaching the 900 million mark, MGM will therefore lose money.

Now the question that can be asked is the probability that the film can actually generate more than 900 million in revenue.

As the pandemic is not over and the public has not yet returned to its past habits, it is unlikely that theater attendance will return to pre-covid levels from October 2021.

For comparison, the last James Bond film, Specter , generated 880 million worldwide. And Skyfall , the penultimate film in the saga, made 1 billion.

But another blockbuster released during the pandemic, Fast and Furious 9, only made $650 million while the previous part of the franchise had generated $1 billion…

No Time To Die therefore faces an almost insurmountable challenge…

In any case, the MGM studio will lose. Because the goal is obviously not to cover costs but to generate profit.

And for the studio, not making a profit on its biggest franchise is a gigantic shortfall…

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