Tuesday, April 30, 2024

Merchandising and the Bottom Line for Today's Movies: Estimating Profitability

It has long been the case that merchandising has been crucial to the revenue stream for Hollywood films for a long time--for so long that many seeing Spaceballs over the years must have been unclear on just why Mel Brooks so pointedly raised the issue in that film. (The reason is that Star Wars was the watershed here.)

In its calculations Deadline has income from merchandising accounting for over a fifth of the revenue for PAW Patrol: The Mighty Movie (which made the #10 spot in its Most Valuable Blockbusters of 2023 tournament). Indeed, the publication's analyst Anthony D'Alessandro notes that merchandising was decisive where profitability was concerned, and indeed the film "greenlit" here because of this.

This is a more common story than one might think--but it seems to me that taking merchandising into account here and not in the case of other films (it is not mentioned in the report on Guardians of the Galaxy 3, of the huge importance of merchandising to Marvel's profits) is distortive of the rankings this time around.

No comments:

Subscribe Now: Feed Icon