A Geeky Viewpoint

Burbank, CA – November 21, 2016 – Legendary and the Frank Herbert estate have reached an agreement granting the production entity the film and television motion picture rights to the beloved novel DUNE, one of the most revered science fiction novels of all time. The agreement calls for the development and production of possible film and television projects for a global audience.

Set in the distant future, Dune tells the story of Paul Atreides whose family accepts control of the desert planet Arrakis. As the only producer of a highly valuable resource, control of Arrakis is highly contested among the noble families. After Paul and his family are betrayed, the story explores themes of politics, religion, and man’s relationship to nature as Paul leads a rebellion to restore his family’s control of Arrakis.

Dune has long been considered the crown jewel of science fiction properties. Its’ legacy and influence is witnessed in everything from STAR WARS to THE MATRIX and often referred to as the science fiction version of LORD OF THE RINGS with its sprawling world and multi-dimensional politics.

The agreement was negotiated by Mike Ross and Jen Grazier on behalf of Legendary and Marcy Morris and Barry Tyerman of JTWAMMK on behalf of the Herbert family.

About Legendary Entertainment

Legendary Entertainment is a leading media company with film (Legendary Pictures), television and digital (Legendary Television and Digital Media) and comics (Legendary Comics) divisions dedicated to owning, producing and delivering content to worldwide audiences. Legendary has built a library of marquee media properties and has established itself as a trusted brand which consistently delivers high-quality, commercial entertainment including some of the world’s most popular intellectual property. In aggregate, Legendary Pictures-associated productions have realized grosses of more than $13 billion worldwide at the box office. To learn more visit: www.legendary.com

According to Variety David Leitch has been confirmed as director of the Deadpool sequel.

A month ago Tim Miller director of the first film departed the project citing creative differences, those differences were later rumored to be between Ryan Reynolds and Tim Miller on choice to play the part of Cable and budget of the film.  

Deavid Leitch has co-directed John Wick, starring Keenu Reeves and been involved in stunts and stunt coordination in film for over 20 years.  

Blackbolt - Image Curtesy of Marvel Entertainment

According to Deadline TV ABC has picked up Marvel's Inhumans TV Series for the Fall of 2017. In an interesting twist, the premier will be Theatrically released in Imax two before it airs on ABC.

The show is not a direct spin off of Marvel's Agents of S.H.I.E.L.D. and will be a part of the MCU.


 

Deadline is reporting that Universal has inked a deal to make a remake of the 1981 classic horror film, An American Werewolf in London.

[DEADLINE] EXCLUSIVE: An American Werewolf in London is officially getting a remake with The Walking Dead‘s David Albert and Robert Kirkman producing through their Skybound Entertainment for Universal Pictures. The remake of filmmaker John Landis’ classic 1981 comedic horror film will be written by his son Max Landis, who also is attached to direct. The news comes after the elder Landis and filmmaker Anthony Waller (An American Werewolf in Paris) sealed a deal with the studio on the rights. The younger Landis’ deal is being negotiated. Skybound has a first-look production deal with Universal.

The other day I wrote a small piece on the surprising profits that many studios have announced recently.    I have received a request to clarify a section.

In 2016 we have 8 movies domestically reach $200 M or more in box office receipts.  With 4 potential additional movies that may reach that plateau by years end.   This is clearly in line with the past five years with 12 or 13 movies over the $200 M mark.
The problem is $100 M dollar movies.     Over the past five years we have had an average of 20 movies take in between $100 M and $200 M in domestic box office revenue, this year we have 11.   With the release schedule for the remainder of the year, unless we have several break out hits we will have the fewest number of $100 M or greater movies since 2006.

The domestic box office tracking numbers in Millions of Dollars US for some forthcoming movies:

Title:     Opening Weekend:    Total:
Rogue One: A Star Wars Story |  $125-$150 ($135) | $375-$410 ($405)
Moana* | $60M-$80M ($65) | $250-$300 ($285)
Doctor Strange | $88 M | $250-$300 ($275)
Fantastic Beasts and Where to Find Them | $70-$90 ($75) | $175-$210 ($205)
Passengers* | $30-$40 ($35) | $125-$200 ($175)
Sing* | $15-$30 ($25) | $95 - $125 ($115)
Trolls | $30 | $65 - $125 ($110)
Arrival | $20-$35 ($25) | $75-$95 ($90)

*Opens prior to the weekend

Some notes on these:
Rogue One: A Star Wars Story has been holding steady since the first numbers started trickling out during the late summer.   There is an idea that the film has legs and will make an decent 3x its opening weekend.     Many of the top films of the past couple of years are 2.0 to 2.2X multipliers.   However it is not predicted to have a Star Wars like opening.  

Five of the remaining seven movies are trending down, the exceptions are Doctor Strange and Arrival, when looking at their tracking numbers over the past month.  

Moana is tracking below Zootopia and Big Hero Six in terms of online hits, hashtags and so forth one month before its release, yet it trending above both in terms of its tracking numbers.

The tracking numbers for Trolls are very divergent in terms of their range.   Many associate this to a question about how a toy from the 80's will work for children of the 2010's?



 

In a series of surprising announcements this week several major studios announced a profit for the most recent quarter.   When you couple this with quarterly or seasonal box office revenue down in two of the three most recent quarters/seasons and the over domestic and international movie revenues being down for the year those statements make little sense without taking a deeper dive into them.

In 2016 we have 8 movies domestically reach $200 M or more in box office receipts.  With 4 potential additional movies that may reach that plateau by years end.   This is clearly in line with the past five years with 12 or 13 movies over the $200 M mark.
The problem is $100 M dollar movies.     Over the past five years we have had an average of 20 movies take in between $100 M and $200 M in domestic box office revenue, this year we have 11.   With the release schedule for the remainder of the year, unless we have several break out hits we will have the fewest number of $100 M or greater movies since 2006.

In 2006 the average movie made $15 M in total domestic box office receipts, which is on the low end but pretty typical for the past 10 years.   In 2016 we are on pace to finish with sub $13 M average.  Major Studio releases are headed for a $59 M average domestic box office receipts compared to $69 M average over the past 5 years.   The lowest total in that time was $66 M.

If you add in the lack luster Blu-Ray and DVD sales and streaming sales (iTunes/Amazon/other) well below expectations how can it be possible that Studios are turning a profit.

The answer is fairly simple, Movie Studios are spending far less money on production of films this year than in past years.   This year of the top 15 films of the year studios spent on average $30 M less in production expenses than the previous 5 years.    When looking at the overall budget for Major Studio films the average has decreased by nearly $14 M a film according to multiple sources.