A new report reveals that Walt Disney’s live-action Snow White starring Rachel Zegler and Gal Gadot had an initial cost of $209.3 million.
This new report from Forbes’ Caroline Reed shows that Snow White production in the UK was under the code name Hidden Heart Productions Limited. According to Reed, The Walt Disney Company has already spent $209.3 million in the UK as of July 31, 2022.
However, she notes that the UK government gave Disney a tax credit of $41.1 million, meaning the net cost so far is $168.2 million.
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It’s important to note here that these are only costs up to July 31, 2022, and do not include production costs incurred after that date. Ford rightly notes, “Costs were likely to increase sharply as there was still more than a year of post-production work to be done after the financial reporting date.”
However, it’s not just post-production that will increase costs. We know they also took pictures without Rachel Zegler earlier this year. It’s likely that production costs and anything they could have done last year will also be included.
Reacting to the news, financial and box office analyst Valliant Renegade wrote on X: “Looks like Rachel Zegler’s SNOW WHITE will cost $300 million.”
It’s possible that this figure could exceed $300 million, considering the production costs incurred over the past year as well as any post-production work the film will have to go through.
However, Reed argues that based on these initial numbers, the film would need to gross $336.4 million to break even. However, her calculations do not take into account marketing costs.
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She explains that studios typically receive 55% of box office receipts from domestic theaters and 43% of receipts from international markets. So, she explains, “If you take the average of 43% and 55%, that works out to about a 50-50 box office split between theaters and studios.”
She then concludes: “If Disney kept about 50% of the revenue from Snow Whitethe film would need to gross $336.4 million just to cover its $168.2 million base.”
However, as noted above, given that it is clear that production costs will still be significant, as well as post-production and marketing, it can be assumed that the film should gross at least $750 million, and that’s using a conservative multiple of 2.5x for Valliant Renegade’s minimum production of $300 million. The 2.5x multiple takes into account various gross receipts as well as marketing costs.
Given the huge budget, it is unlikely that the film will recoup its costs. Latest feature film Mermaid It grossed just $569.1 million this year.
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And these huge budgets are becoming a big problem for Wall Street analysts. Financial analyst Valliant Renegade recently noted that Needham analyst Laura Martin, who recently attended an investor presentation at Walt Disney World attended by 120 people, shared that Iger did not discuss the company’s film weaknesses.
Valliant Renegade commented: “The weakness of Disney films, that is, the weakness of the films Disney releases in theaters, is something we’ve talked candidly about here and had quite a few laughs about.”
He later discussed the section of Martin’s report that addressed this box office weakness. Martin explained that Iger has indeed solved the company’s box office problem, but his solution is to reduce the number of Marvel films and TV shows being produced, as well as reducing their cost.
Moving on to Pixar, she detailed: “Pixar’s directors are mostly new, so he thinks (Disney) is better off assigning them existing characters and stories through sequels rather than starting from scratch like Elemental And Blushes“
Commenting on this, Valliant Renegade stated: “Oh great! Hand over the IP addresses of Pixar’s wildly popular money machine to new flunkies who don’t know their ass from a hole in the ground. I’m sure it will turn out wonderfully, as have all the Disney remakes, sequels and adaptations over the last two or three years.”
What do you think of the already huge production budget for a live-action film? Snow White starring Rachel Zegler?
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