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HOLLYWOOD, CA (June 23, 2008) – Coming off reaching the billion-dollar mark in international box office sales last weekend, Paramount Pictures Corporation has now also crossed the billion-dollar milestone on its domestic gross sales, making it the first studio to accomplish this feat this calendar year and besting last year’s billion-dollar record by nearly three weeks.
This marks back-to-back years of firsts for Paramount Pictures and five consecutive weeks of holding the Number One spot in domestic market share. The studio also set a new first as of this weekend – having the Top Three grossing films of 2008 at mid-year.
The half-year got off to a strong start with JJ Abrams’ thriller Cloverfield earning $80M. Paramount was further buoyed by the blockbuster successes of Marvel Entertainment’s Iron Man ($305M), Lucas Films' and Steven Spielberg’s Indiana Jones and the Kingdom of the Crystal Skull ($291M) and DreamWorks Animation’s Kung Fu Panda ($156M – which this weekend surpassed Horton Hears A Who! to become the year’s third top grossing film to this point).
"It has been a wonderful year so far," said Paramount Chairman Brad Grey. "As we look towards the rest of 2008, and into 2009 -- when we will have Transformers II, JJ Abram's Star Trek, G.I. Joe and NowhereLand starring Eddie Murphy, among others -- we are as excited about the future as we are by reaching this milestone."
Paramount’s forthcoming openings this year include DreamWorks’ Tropic Thunder starring Ben Stiller, Robert Downey Jr., and Jack Black (August 15, 2008), Paramount Vantage’s American Teen (July 25, 2008), DreamWorks Animation’s Madagascar Escape to Africa (November 7, 2008) and Paramount’s The Curious Case of Benjamin Button starring Brad Pitt and Cate Blanchett (Christmas Day).
Paramount First To Hit $1 Billion For 2008
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Hey Nikki, WIll Work ever start again. New York City is dead
While I give a hearty Teddy Roosevelt style “bully for you” to Paramount for hitting the $1 billion mark, I do notice that the majority of said blockbusters were developed by DreamWorks, Lucasfilm, or Marvel, and how few were developed in house by Paramount.
Makes you wonder what Paramount would do if/when DreamWorks makes its play for independence, and what deal they have with the self-financing Marvel to handle the Iron Man distribution, and how that will affect its final numbers.
It is going to be a great year at the box office!
1 Billion for Paramount! Yay! Such news! But, I thought they were strapped? I mean, they can’t give us ANY raise on DVD, let ALONE a cost of living one (since the ’80’s when they made it, what, 12 cents per actor in a cast of 10-20-30 actors?), they can’t give SAG proper jurisdiction on internet production because they want to EVENTUALLY TAKE AWAY OUR RESIDUALS YOU DUMMIES, they can’t continue to let us collectively bargain force majeure, as we have for so long, they can’t raise minimums to fair levels, since they no longer honor quotes, it’s all “the stars get obscene amounts and gross points – everybody else? SCALE YOU LOSERS!” – but hey, WE JUST MADE A BILLION DOLLARS!
Hey AFTRA and all it’s supporters in the current labor impasse – the suits are f****** laughing at you as I write this. Pathetic.
I think Mrs. Wakely makes a good point.
Hey Mrs. Wakely,
I think your statement is incredibly selfish. I assume, you are a SAG member.
I would encourage you to think about the IATSE members who are in a far worse position than you. It is IATSE that hurts the most during strikes. It is IATSE that gets most screwed during negotiations. It is IATSE members that are the first to lose their homes due to lack of work.
Before you go getting all upset about the SAG minimums, why don’t you go look up what the minimum is for a Production Coordinator. I’ll help you, they’re a member of IATSE 871…
Did you look? Didn’t think so, because you don’t care. I’ll tell you. Zero. There is no minimum for Production Coordinators, people who are Producer Guild eligible, a person the WHOLE production relies on to help keep it glued together.
And the coordinators are not alone. There are many other production positions that get screwed far more than actors and writers. Please, before you post a rant next time, take that into consideration.
Wow five movies made one billion. How much did the others make or lose gross or net.
Of course, Paramount did not actually make a billion dollars at the box office.They GROSSED a billion dollars . About 40% of that money stays with the theatre owners.
Thanks Dreamworks & Marvel for producing quality movies that we all enjoyed.
Brad..go take a hike!
Clayton,
My first question is Why the hate? I’ve been surfing this site for quite a while now and there seems to be a definte dislike between Crew Members and Actors. Frankly, I don’t get it. Neither one of us can survive without the other — and it seems like we both get screwed on a regular basis by the Studios. Without you IATSE members to do the amazing job that you all do behind the scenes actors may as well be doing school plays, but on the same token, without actors you guys have no one to production coordinate, grip, gaffe, tranpo, etc. for. I really don’t know why we can’t get along and support each other.
Clayton
I don’t get the logic mate. WTF does IATSE rates have to do with SAG trying to get a fair deal? OF COURSE everybody would be bummed if there was a strike, but what you’re saying makes no sense, it’s like “if the railways strike – it will inconvenience the riders!” Uh, yup, there is a certain cause and effect to ALL acts of nature. So, pull up your panties, go lobby your local IATSE leader and get more money, OR, get the f*** out of the business. Nobody put a gun to your head and forced you to wrap cable buddy.
go ahead and strike. then all the new unsigned feature/primetime shows will sign with aftra, cause they will be done on digital {new media} and all you SAG members can go take a hike. or join the new AFTRA
Just so you know, even if there is a strike, it would hurt the AMPTP’s rep in the long run. Plus, whatever the deal is, new media shows that follow AFTRA guidelines will be blacklisted along with actors that support that contract including Tom Hanks according to some sources.
Back on topic, here is the number of hits vs non-hits for Paramount in the last 10 Plus years. This list includes partnerships with Paramount to produce and distribute films.
@Comment by Mrs. Wakely — June 23, 2008 @ 11:49 am
go to dictionary.com or some other online reference source and familiarize yourself with the concept of ‘gross’ and ‘net’ before you continue harping on Paramount ‘making’ a billion dollars.
As Bob astutely pointed out, 40% is gone to theater owners right away and, oh yeah, grossing a billion puts you in a MUCH higher corporate tax bracket. Which is to say nothing of the millions they had to eat shooting lame assed projects that went nowhere.
I’m not saying Paramount is broke, but it’s not like Brad is swimming in a pool filled with $100 bills either.
I think the only films Paramount have fully financed recently are THE SHOOTER, STOP LOSS, CLOVERFIELD, SPIDERWICK, HOT ROD, FREEDOM WRITERS, MISSION IMPOSSIBLE 3 and BARNYARD, and these were through their Melrose Funds (I think Zwern is their i-banker on these?)
Everything else is either Dreamworks, Marvel, Shangri-La, Lucasfilm or Spyglass. They don’t really have any hits in-house.
just wondering… why do we care so much that paramount hit the billion dollar mark? ill admit i was interested and i also check weekend box-office numbers and all that stuff, but by doing that aren’t we just playing into that whole thing and making the ‘box-office’ the the main criteria by which a movie is considered a success or a failure – which i guess it is, but, i don’t know, it just feels like there is something wrong with that and that it is what leads studios to keep making so much regular junk because it has proven marketable in the past, rather then taking some chances or allowing a director to make the film he wants to make because they need to get this much action or special effects in, etc… you watch films like I Am Legend and you feel the studio hand coming in about half way through and taking a well paced, interesting film and basically saying ‘ok, whre are the zombies and the action… forget about the story or the characters or anything like that. just give us action and wrap it up”… but i digress.
WhyTheHate,
I don’t think there is an existing dislike between crew and actors, nor crew and writers… There is however, a genuine concern the crew has for their wellbeing… It is not a good feeling when so much power that can control your future lies in the hands of someone else.
—
Mrs. Wakley,
I looked up what usually happens during a transit strike, and although strikes have happened, it appears the government usually steps in and forces a cancel of the strike. They do this because if the transit system were to go down, tens of thousands of people would be unable to get to work, unable to collect a paycheck, unable to make a living.
This is similar to what happens to IATSE member when the Actors or Writers strike.
Don’t misunderstand me. We all think actors AND writers AND directors AND crew AND producers deserve fair and equitable compensation. However, the Hollywood system is broken in that regard. The Above-The-Line people on a movie often times use up to 50% of the total budget of a film. The other 50% has to be shared through production costs and crew salaries. Sure, the movie would never get made without the creative and producer units, but could it get made without the crew?
My overall point is that if you are going to get all worked up over unfair compensation, I believe you should speak for ALL of the production, not just one singular group.
A suggestion, on my part — salary caps. They exist in professional sports, why not the entertainment industry? Does Will Smith really need to make $20 million a picture plus points?
I think few people ’should’ (not let’s even talk ‘need’) to make $20 million (plus points) and certainly not Will Smith.
And the answer to the question of whether or not a movie would get made without the crew is NO. Could I Am Legend been made without Will Smith? Uhm sure. Could they have made it without a crew, uhm NO.
Mrs Wakely doesn’t understand the economics of the motion picture industry, so it’s really no use fighting.
The profit margins on motion pictures could be compared to the profit margins of the grocery store business. This is why it’s such a battle when there is a strike.
When Wal-Mart buys DVDs in bulk at 4 bucks a POP and is the largest DVD seller in North America — you do the math.
Clayton is right, Hollywood needs a salary cap. However executives also need a salary cap and there is no way that they will agree to that unless top actors take a massive cut, and I mean massive.
The only reason why we are talking Paramount making One Billion dollars is because Nikki made it an issue. If we believe the theaters 40% take, that would mean that Paramount has made Six Hundred Million dollars, but that is net.
Some theaters are simple movie-houses that have anywhere from 2 to 20 screens and are either minor chains or stand alone systems. These theaters might take a little bit more off the top with a discount for independent films. However, they can’t stand many releases that bomb because they can’t get their money back.
Others are big and massive chains that manage to score massive releases from the studio system, and they can absorb losses from movies that bomb. But the failure rate vs small movie-houses is higher than them because the big chain can pull a movie quicker if it is even a minor bust. I remember when Godzilla was released by Sony in 1998 and our local Carmike Theater chain had the movie scheduled for six of their eight screens, but was such a bust that it was clear that Godzilla would be a bomb worldwide. Hancock, also a Sony release, could end up being a bomb, but due to an ending that doesn’t mesh with the rest of the story.
The lesson is that most films have to go through billions of dollars before they are considered a hit. No wonder why the AMPTP says its members are losing money.
I like to consider myself a fairly intelligent person. I went to college. I had several economics, marketing and business classes that I actually passed. My question is, if Studio’s don’t make any money off of their movies, even their hits, as some Studio’s claim — THEN WHY DO THEY MAKE MOVIES AT ALL? Or TV shows? Or any type of filmed entertainment? I don’t buy that they have the same profit margins as grocery stores. If that is the case how can all these studio heads and big executives afford to get paid their Golden Umbrella payments when they get fired? Salary caps for big stars – sure. But also caps for Executives who in my opinion do nothing but screw movies up.
Clayton – I understand you point. It is most uncomfortable when someone else has the power to control your future. That is how actors live our lives. We have no control over what parts we are going to get, or when, or how most times. All we can do is our best – the rest is up to someone else. Even if you are the best for a certain part, and by that I mean gave the best audition, you may loose out because you are too tall, too short, too fat, too skinny, you look too much like the producers ex boyfriend etc. etc. etc. I’ve never worked crew, but I have lots of friends who do, and from what I understand if you do the best job you can and do a good job at that you will work again and again and again. Actors don’t have that luxury. We may do an amazing job in some commercial or tv show or movie and then…NOT WORK FOR A YEAR OR MORE. All the actors are tying to do (and the all the writers tried to do) is get fair compensation for our contribution to the work as a whole. At the end of the day I don’t feel like you can blame us for striking what we feel is a bad deal. Blame the studios. Like you we just want to provide for our families and secure our future in the best way we know how.
Andrew – I only noticed one flaw in your logic. You are absolutely right – I am Legend would not have gotten made without the crew. But do you think anyone would have gone to see that movie if Will Smith (or Brad Pitt, or Tom Cruise, Clooney, Hanks, etc.) had not been in it? The reason these stars get paid what they do is because they are the reason people go see movies. Joe Schmo America likes familiarity. They also like celebrities. That is why the stars get paid what they do. Without them people will stay home and watch TV, play video games and maybe even, god forbid, read a book.
Robert Not So Wise:
Is that why the DVD business is a 32 billion dollar a year industry? Even if Wal-Mart buys in bulk for 4 dollars a DVD that is still an obscene amount of money. And don’t tell me that DVD’s have a small profit margin like grocery stores. I made a short film and had a DVD made of it. The cost, including having it authored with cool menus and special features and having a 1000 copies made was…get this…are you ready…$850!! And the more copies I made the cheaper it got. Because once all the work is done with authoring and content and such – DVD’s are cheap as hell. Unlike VHS they have no moving parts. You stick’em in a machine and you can make endless copies for practically nothing.
So my math for let’s say “I am Legend”. It’s estimated budget was $150,000,000. Let’s add $30 million for marketing. We’re now at $180 million (including what it costs to create and market DVD’s since 99% of movies do that before the thing even comes out in theatres). According to http://www.boxofficmojo.com “I am Legend” grossed $584,137,442 worldwide. It also made an additional $50.44 million in video rentals and according to the-numbers.com, the film has sold 5.8 million DVDs and earned $107.9 million in revenue after twelve weeks. So the math on that is –
$584,137,442 + $50,440,000 + $107,900,000 – $180,000,000 = $562,477,442.
You’re right, with those numbers, I don’t see how Studio’s can make any money. And anyone who says %40 stays with the theatre owners has no idea how big movie theatres work. Most of the time they have to RENT THE PRINT OF THE FILM from the studio, and agree to give all of the opening weekend gross back as incentive to get the print of a film. Movie studios (like grocery stores with the Deli counter) make most of their money from concessions – why do you think it cost 4 dollars for a coke that is soda water and 12 cents worth of syrup?
Wagh!
I didn’t say the margins on DVDs are slim, I said the profit margins on motion pictures are not quite what you think. I think you’d be surprised.
I Am Legend was a co-pro between WB and VR, with Roadshow handling the bank line. The film cost what? 180 million? What’s that with interest and finance charges? (Usually 20% of the all-in bonded budget — so that’s 36 million – bringing a total to 206 million, sans P&A) Then let’s say the P&A spend was about, say, 70 million…)
The gross participants (Will being 20 against 20, plus escalators to 25, 30 and 35 at CBE, CB 10, CB 15) His HV royalty is usually close to 100%, so that wipes out real serious profit on video, just distribution fees…
But they know they’ll turn a buck because it’s Will Smith, so it’s made. But it’s not made knowing they’ll REAP HUNDREDS OF MILLIONS OF DOLLARS, because it just doesn’t happen.
Just sayin’ The economics are not quite what you think.
Oh, and with regard to exhibitors — opening weekend is usually a 90/10 split, which escalates eventually to 50/50, and then if the film plays long enough, it tips in their favor to 60/40. The harshest terms I recall of a rental of late was Star Wars: Episode 1, which was 100/0 first week with a 6-week min commitment on the large screen.
What you’re probably thinking about is block booking, which is becoming more and more rare these days, or maybe advance pay which hasn’t been in use since the early 80’s.
Call me if you have any further questions.