View Single Post
Old 08-20-2019, 03:52 PM   #13
DJ's left nut DJ's left nut is offline
Sauntering Vaguely Downwards
 
DJ's left nut's Avatar
 

Join Date: Sep 2005
Location: Columbia, Mo
Casino cash: $3289099
Quote:
Originally Posted by DaFace View Post
I could be wrong on this, but I don't think those two percentages are apples-to-apples comparisons. The 5% is described as "first dollar gross," which I would take to mean it's a pure 5% of revenue (and expenses don't matter). The other arrangement Disney was proposing was "50/50 co-financing," which I would interpret as both of them have an equal stake in both the expenses and revenues (so Disney gets 50% of the profits rather than 5% of the gross revenue).

I'm sure that the 50/50 still is massively better for Disney than the 5%, but I don't THINK your assessment that it would be "ten times the profits" is accurate.

EDIT: To further disclaim this, I'm only about 75% sure I'm understanding this correctly, but using figures from Far From Home, the film looks like it made about $1.1 billion worldwide, so Disney's share would be about $55 million. If you remove 3x production budget from that (which I've heard is a rough rule of thumb for total budget including marketing and distribution), that would mean Disney would have gotten like $310 million. So yeah, Disney's proposal is still massively different than the status quo. However, the 5% version says that "If the film tanks, Disney still gets paid," while the 50/50 version says "If the film tanks, Disney takes a hit just like Sony." So it's not COMPLETELY in Disney's favor do move to the latter arrangement.
Yeah, if anyone wants to disagree with anything I said there, I'll defer. I know **** all about this apart from some back of the napkin calculations I could find.

But it certainly appears that Disney is asking for a WAY bigger cut. And that it was big enough for Sony to justify taking a pretty big risk in walking away.

That means something.
__________________
"If there's a god, he's laughing at us.....and our football team..."

"When you look at something through rose colored glasses, all the red flags just look like flags."
Posts: 59,679
DJ's left nut is obviously part of the inner Circle.DJ's left nut is obviously part of the inner Circle.DJ's left nut is obviously part of the inner Circle.DJ's left nut is obviously part of the inner Circle.DJ's left nut is obviously part of the inner Circle.DJ's left nut is obviously part of the inner Circle.DJ's left nut is obviously part of the inner Circle.DJ's left nut is obviously part of the inner Circle.DJ's left nut is obviously part of the inner Circle.DJ's left nut is obviously part of the inner Circle.DJ's left nut is obviously part of the inner Circle.
    Reply With Quote