Blu-ray.com has posted their review of the 2D Blu-ray release of The Hobbit: The Desolation of Smaug. High marks are given for both video (4.5 out of 5) and audio quality (5 out of 5) – and we also get a closer glimpse at what bonus features are offered on this Theatrical Blu-ray/DVD edition.
Of particular note is the inclusion of last year’s The Desolation of Smaug Live Event, as well as a collection of trailers for the film (both of which were previously unadvertised for this release). (more…)
Posted in Blu-Ray, DVD/Blu-Ray, Headlines, Hobbit Movie, Merchandise, MGM, Miscellaneous, New Line Cinema, Peter Jackson, The Hobbit, The Hobbit: The Desolation of Smaug, Warner Bros.
Welcome to this months “Getting to know you” Q&A, this month we’re talking to the wonderful Royd Tolkien.
I received a lot of questions for Royd, which I have divided into three sections, reflecting peoples main areas of interest. I hope you enjoy the interview as much as I did conducting it. Cheers Kel x
Posted in Fans, Headlines, Hobbit Book, Hobbit Movie, J.R.R. Tolkien, Lord of the Rings, LotR Movies, The Hobbit, TheOneRing.net Community, Tolkien, Tolkien Family
Box office reporting focuses heavily on ticket sales and revenue numbers. So it’s no secret that (according to latest Box Office Mojo numbers) The Hobbit: The Desolation of Smaug has pulled in just over $944 million in ticket sales.
Profit figures, on the other hand, tend to be more opaque and mysterious.
However, movie website Deadline | Hollywood has crunched some numbers with a number of “experts” as part of its effort to unearth the most valuable blockbuster of 2013. By its calculation, the second film in Peter Jackson’s Hobbit sequence has (thus far) made a profit of $134.1 million.
Just how did they do it?
The Hobbit: Desolation of Smaug profit breakdown. Source: Deadline | Hollywood.
Explaining the earnings
Disregard the calculations for The Hunger Games: Catching Fire in the second column — it’s part of the head-to-head thing that Deadline is conducting.
The first thing to realise (and it took me a little bit of research to work it out) is that that enormous $944 million global box office is split a number of different ways. Nominally at least (Hollywood accounting practises are notoriously dubious), distributors and theatres are taking a goodly chunk of that gross.
Well, according to Deadline’s figures, USA domestic distributors and theatres are taking just under half the domestic box office, while Warner Bros. sees a mere 42.9% of the foreign take and as little as 23.4% of the Chinese gross. The remainder — named Theatrical Rental — is Warner Bros. income. Thus, of that $944.2 million, only $420.3 will make its way to Warner Bros. coffers.
That’s why, according to Deadline, even with other revenues (telly and etc.) factored in, Warner Bros.’ gross revenue from The Desolation of Smaug will hit only (only!) $795.6 million.
Accounting for the expenses
Deadline puts Desolation of Smaug’s production cost at $260 million. I’m not entirely certain how they arrived at that, I’ve seen figures as low as $225 million, and others as high as $295 million (the latter admittedly including printing and advertising costs).
Yet Deadline lists printing and advertising (domestic and international) costs as an additional $155 million.
It’s a puzzle, but this article on io9 gives some insights.
According to Contrino, the Print & Advertising (P&A) costs of a movie can be incredibly high — for a small $20 million film, the promotional budget can be higher than the production budget. That’s because those films are often romantic comedies or kids’ movies, which are cheap to make but still need a lot of promotion. For a film which cost between $35 and $75 million to make, the P&A budget will most likely be at least half the production budget. And the numbers only go up with bigger films. “If the studio spends a lot on the budget, they’re going to want to protect that investment by advertising it heavily,” says Contrino.
If Deadline is correct, the amount invested on marketing The Desolation of Smaug’s around the world clocked in at more than half its estimated production budget.
Rights payments presumably include royalties to the late Saul Zaentz’s Middle-earth Enterprises as well as to Tolkien Estate, while Participations refers to payments to actors, writers and directors as a percentage of either gross or net profit. And overheads seems to be calculated at a straight 15% of the production budget.
According to Deadline, all these factors mean that the total cost of making, marketing and putting The Desolation of Smaug on screen add up to a sizeable $661.4 million.
Return on investment
Which brings us to the bottom line — a profit of $134.1 million. As Deadline calculates, that’s a cash return on cash invested of 20% (134m/661m x 100). It’s a return on investment that as best I can tell compares favourably against other forms of investment — the 10-year (to December 31, 2013) performance of the the S&P 500 is an average annual total return of 7.40%. US bonds, as gauged by the Barclays Aggregate U.S. Bond Index, average 4.55% annually over the same period.
The numbers for The Hunger Games: Catching Fire (an ROI of an unbelievable 200%) illustrate even more starkly (in big, fat $$$ signs) the reason studios relentlessly chase blockbuster success.
Of course, the flipside is the greater risk involved. Stocks and bonds, generally, offer a safer investment. For every profitable film, there’s a long list of grand commercial failures that see studios losing tens of millions of dollars. And that’s the hard calculus under all that creative accounting.
Note: This is mostly an attempt to puzzle out the numbers. I am not an expert (in this area at least). If there’s anything I’ve missed, or seems out of whack, leave a note in the comments or drop me a note at demosthenes at the onering dot net.
Posted in Headlines, Hobbit Movie, Peter Jackson, Studios, The Hobbit, The Hobbit: The Desolation of Smaug, Warner Bros.
Our latest Library feature is a question piece that’s been rolling around my head for the last couple of months. As anyone who knows me well, I’m an extremely curious little cat and enjoy hearing other peoples opinions on a topic, both for and against, so with that in mind:
Book Characters versus Movie Characters
Have your perceptions of characters changed after seeing them on the big screen?
I’ve been thinking about this a lot, ever since I interviewed Peckish Owl and she replied to my question about her favourite characters in LOTR/The Hobbit with;
Posted in Characters, Fans, Headlines, Hobbit Book, Hobbit Movie, Lord of the Rings, LotR Books, LotR Movies, The Hobbit, TheOneRing.net Community
The Blu-ray and DVD editions of The Hobbit: The Desolation of Smaug won’t be released for another two weeks – but for those of you who just can’t wait any longer, the film is now available on iTunes.
Along with the film, you’ll also gain access to the bonus features “Peter Jackson Invites You to the Set” (In the Company of The Hobbit & All in a Day’s Work) and “New Zealand: Home of Middle-earth: Part 2″. (more…)
Posted in Blu-Ray, DVD/Blu-Ray, DVDs, Headlines, Hobbit Movie, Merchandise, MGM, Miscellaneous, New Line Cinema, Shop, The Hobbit, The Hobbit: The Desolation of Smaug, Warner Bros.
If you’ve ever watched Ralph Bakshi’s
1978 cult animation of The Lord of the Rings, you’ll undoubtedly vividly recall the scene of the confrontation between Gandalf and the Balrog in Moria.
The lion-headed creature with the body of an ape, butterfly wings plus a whip and flaming sword remains one of the classic renditions of Tolkien’s monster — whether for better or worse is up to you.
If you haven’t seen it before, or would like to refresh your memory, just check the clip below. (more…)
Posted in Green Books, Headlines, Lord of the Rings, LotR Movies
Following on from staffer Kili’s post, here’s the official word from UK publisher Harper Collins on the upcoming release of Tolkien’s translation of Beowulf. The Harper Collins article contains comment from Tolkien’s son, Christopher, on how he has gathered, along side his father’s translation of the Old English poem, text from lectures given at Oxford by J R R Tolkien. These show his fascination for Beowulf, Grendel and, in particular, the lure and power of treasure – which of course we see reflected in The Hobbit, in Thorin’s struggles against, as Richard Armitage has called it, ‘gold lust’.
This new publication will also contain Sellic Spell, ’a story written by Tolkien suggesting what might have been the form and style of an Old English folk-tale of Beowulf, in which there was no association with the “historical legends” of the Northern kingdoms.’ This further insight into Tolkien’s desire to create English native myth, unadulterated by Norse or Germanic legends, is an exciting prospect. Fans of Tolkien, of Anglo-Saxon, and of legendary battles, will be able to get their hands on this edition of Beowulf from 22nd May.
Read the full article from Harper Collins here, and the Houghton Mifflin Harcourt (US Publisher) version here.
Posted in Books, Books Publications, Christopher Tolkien, Headlines, Hobbit Book, J.R.R. Tolkien, Richard Armitage, The Hobbit, Tolkien