Netflix is aiming to create the next big franchise
The Wall Street Journal, by Sarah Krouse and Robbie Whelan, p. 1
Netflix Inc. is spending big on a sci-fi film from the filmmaking team behind it”Avengers: Endgame”, underscoring the company’s willingness to invest heavily in projects it believes could be turned into major franchises. The price of the filmThe Electric State” – which sees the participation of first-rate talents such as Chris Pratt Of “Guardians of the Galaxy” And Millie Bobby Brownstar of “Stranger Things” – will likely be around $200 million, according to people familiar with the matter. That would make it one of the most expensive original film projects the company has ever done, according to people familiar with the charges. Netflix hopes the new film will be popular enough to justify franchise opportunities such as TV show spinoffs, merchandise or video games. A Netflix spokeswoman disputed the budget figure, but declined to say how much the streamer plans to spend. There are several ways to calculate a film’s budget, which can include intellectual property acquisition costs, production and writer fees, as well as actor and director fees. Also, for movies that aren’t being released theatrically, it’s common for streaming companies like Netflix to pay actors and directors up front to make up for the lack of revenue in the form of box office and other payments, including licensing fees. , which are reportedly Hollyhas resisted putting her films in theaters on a large scale. Discrepancies in calculating film budgets can arise from which expenses are included in the count, such as whether the figure is gross or net after accounting for things like tax credits for filming in a certain jurisdiction.
The investment in “The Electric State” comes while Netflix seeks to maximize the $17 billion content budget it spends each year in an ultra-competitive streaming market where investors prioritize profitability. The company recently pulled the plug on a $100 million-plus romantic comedy written and directed by the director Nancy Meyersafter a disagreement between Netflix and the director over costs, according to people familiar with the film. Scott Stuber, president of Netflix, is trying to balance bigger-budget blockbusters, which have the potential to become franchises, with a steady diet of less expensive films that are viewed by a substantial portion of subscribers. “The Electric State”, based on a 2018 graphic novel by the Swedish author Simon St.lenhag, describes a cross-country journey taken by a teenage girl and a robot. It is directed by Joe and Anthony Russowho directed “Avengers: Endgame“, the second highest-grossing film of all time after “Avatars” from 2009. Other Netflix bets on new franchises are space fantasy “rebel moon” Of Zach Snyderslated for this year, the action film “The Old Guard”, of which a sequel is underway, and “Extraction“, another film by the Russo brothers with a sequel scheduled for June.
(Continued on The Wall Street Journal)