Family model vs. corporate model Part II

Avengers: Age of Ultron poster

We’re on the verge of the newest chapter in the family model vs. corporate model of filmmaking. Once more, some big numbers are being discussed.

Weeks before it opens, there are already box office projections for Avengers: Age of Ultron, the latest entry from Walt Disney Co.’s Marvel Studios, representing the machine-like corporate model of predictability. A story at the DEADLINE entertainment news website says the new Avengers film is “tracking a little better than (2012’s) The Avengers at the same point in the cycle…and is expected to be one of the highest — if not the highest — opening in history.”

Marvel’s The Avengers movie in 2012 had a U.S. opening weekend of $207 million on its way to an eventual $1.5 billion worldwide box office.

The family model is represented by Eon Productions, which makes the James Bond film series. Eon is controlled by Michael G. Wilson (stepson) and Barbara Broccoli (daughter) of Eon co-founder Albert R. Broccoli.

Eon’s most recent offering, 2012’s Skyfall, scored $1.11 billion at the box office.  Things were closer outside the U.S. where The Avengers had a box office of $895 million while Skyfall had at $804 million, according to the Box Office Mojo website.

The projections cited by Deadline tend to set expectations within the movie industry. If you meet or exceed the projections, you’re doing great. If you fall short, even if the numbers are still substantial, it’s seen as disappointing.

“Geez, what will Disney/Marvel do if they only open to $200M on this one?” Deadline’s Anita Busch wrote.

Eon’s newest 007 installment, SPECTRE, is due out in November. It will also have high expectations when its tracking numbers begin to appear. That’s because of Skyfall’s success as well as SPECTRE’s $300 million budget, which became known because of the computer hacks at Sony Pictures, which is releasing SPECTRE.

Grupo Vidanta says it provided SPECTRE financial help

Image that accompanied a Grupo Vidanta e-mail.

Grupo Vidanta, a major resort developer and operator, says it was among the Mexican companies that provided financial support to SPECTRE, the 24th James Bond film.

Here’s the text of an e-mail sent to Grupo Vidanta customers that also includes the image on the right:

Just as we’re constantly striving to inspire happiness for you and your family, we’re constantly working to provide innovative opportunities that will benefit Mexico’s people and economy. That’s why we’re incredibly excited to announce our financial support of the new James Bond movie, Spectre, which is to be filmed in Mexico City.

In addition to stimulating the local economy during production, Spectre will showcase the spectacular scenery and rich cultural heritage of the city. Bringing this famous franchise to Mexico supports our aim to promote our beloved country as a premier global tourist destination just as we did with JOYÀ, our groundbreaking collaboration with Cirque du Soleil. As part of a franchise that’s made almost $5 billion dollars, this movie offers a prime opportunity to highlight the best of what Mexico has to offer to millions — riches that are yours to explore during your visits to the Vidanta destinations.

We hope you’re as excited as we are about this news and all it means for Mexico, your home away from home. We can’t wait to see you again soon!

The MI6 James Bond website had a STORY ON MARCH 18 quoting Eon Productions co-boss Michael G. Wilson as saying the movie had support from private Mexican companies interested in promoting Mexican tourism. Wilson made the comments during a news conference in Mexico City.

SPECTRE’s pre-credits sequence takes place in Mexico. The movie has gotten tax incentives from Mexico. Memos that became public because of the hacking at Sony Pictures included discussions of how to maximize the incentives. The Sony hack also made public memos that indicate SPECTRE’s budget could exceed $300 million, making it one of the most expensive ever made.

Eon says Mexican incentives didn’t change SPECTRE script

Michael G. Wilson

Michael G. Wilson, co-boss of Eon Productions, denied that Mexican incentives resulted in script changes for SPECTRE, the 24th James Bond film, according to a story by THE ASSOCIATED PRESS.

Wilson spoke at a press conference in Mexico City where SPECTRE is gearing up to film. The official 007 Twitter feed earlier today said the Mexican sequence, which includes the Day of the Dead festival, will be the film’s opening sequence.

“There is nothing in the script that we hadn’t had before,” Wilson said, according to AP.

Tax Analysts, a website for tax professionals, reported IN A MARCH 3 STORY that script changes and casting choices were made to secure as much as $20 million in Mexican incenties. The website cited memos that became public after hacking at Sony Pictures. According to Tax Analysts, memos indicated SPECTRE had to cast a “known Mexican actress” for Estrella.

Wilson said at the press conference that “we always had a Mexican actress playing this part.” Mexcian actress Stephanie Sigman was cast in the part. Sigman was also with Wilson at the press conference.

Wilson also said the movie’s writers believed using the Day of the Dead festival “would be an excellent background in the opening sequence.”

The hacked Sony documents also indicated that SPECTRE’s budget was at a pace to exceed $300 million, making it one of the most expensive movies of all time. Tax Analysts said Metro-Goldwyn-Mayer and Sony, which is releasing SPECTRE, wanted to maximize the Mexican incentives to hold down studio costs.

To real the full AP story (Via the US News and World Report website): CLICK HERE.

UPDATE: Here’s a video from NotimexTV in Mexico uploaded to YouTube. It’s in Spanish, but you can hear Wilson speaking under a translator:

UPDATE II (March 19): The MI6 James Bond website has A STORY with additional Wilson comments from the Mexico City press conference. The story quotes Wilson as saying SPECTRE got financial support from Mexican companies, including hotels and other tourist-related businesses. The story also has some additional details about the Mexico shooting schedule.

How did SPECTRE’s budget get so high?

Many entertainment websites (including this blog) have written about how the Mexican government may have helped shape a sequence in SPECTRE in return for $20 million in incentives, something the TAX ANALYSTS WEBSITE REPORTED EARLIER THIS MONTH.

The Cinema Blend website in its story on the subject added a question about SPECTRE’s $300 million-plus budget: “Why is the budget that high to begin with?” Skyfall had a reported budget of $200 million.

Sam Mendes, at the Dec. 4 media event for SPECTRE said the 007 Stage at Pinewood Studios was “where budgets go to die.” The comment took on a whole new meaning after hacking of internal Sony Pictures emails revealed the budget was on pace to exceed $300 million, making the 24th James Bond movie once of the most expensive of all time.

Cinema Blend poses a good question. Here’s an attempt at a partial answer. What follows is by no means definitive or comprehensive.

More locations: With 2012’s Skyfall, the first unit only went to one location: Turkey. The second unit went to Shanghai to film exteriors but the first unit used Pinewood Studios and U.K. locations in place of the Chinese business center.

With SPECTRE, the crew is traveling more. The OFFICIAL PRESS RELEASE said, “The locations for SPECTRE include Pinewood London, Mexico City, Rome, Tangier and Erfoud, Morocco. Bond is also back in the snow, this time in Sölden, Austria as well as Obertilliach and Lake Altaussee.” Already, there has been filming in Rome and Austria.

Some of the principals probably got a big raise: In November 2012, as Skyfall was on its way to a worldwide box office of $1.1 billion, THE INDEPENDENT reported star Daniel Craig would be paid 31 million pounds (or almost $46 million at current exchange rates) to play 007 in Bond 24 (now SPECTRE) and Bond 25 combined.

According to that article, Craig received 1.9 million pounds for Casino Royale, 4.4 million pounds for Quantum of Solace and 10.7 million pounds for Skyfall.

Meanwhile, Skyfall director Mendes initially said the thought of directing another Bond movie made him “physically ill.”

Nevertheless, Eon Productions wanted Mendes back, to the point of being willing to push back production so the director could participate in some stage projects. With Skyfall’s box office, it’s likely he got a big raise also. Money has a way of calming upset stomachs.

Bond movies now have pricier casts: Under Albert R. Broccoli, Eon was willing to pay big money for its Bond but supporting actors — particularly those with the M, Moneypenny and Q roles — were paid modestly.

In the 21st century, the likes of Ralph Fiennes (a two-time Oscar nominee), Naomie Harris and Ben Whishaw are paid better adjusted for inflation than Bernard Lee, Lois Maxwell and Desmond Llewelyn. Meanwhile, Skyfall had an Oscar winning actor (Javier Bardem as Silva) and SPECTRE has another (Christoph Waltz as Oberhauser).

All of this is, at best, a partial explanation. SPECTRE’s budget exceeds the estimated outlays of Marvel’s The Avengers ($220 million) and The Dark Knight Rises ($250 million), movies with extensive special effects.

SPECTRE by the numbers (and not just 007)

SPECTRE teaser poster

SPECTRE is starting production in Rome, for a five-week shoot, including a car chase, that will cost almost as much (if not more) than some movies.

So, here’s a breakdown of the kind of spending that’s known about the 24th James Bond film. We’ll assume a total production budget of $300 million.

According to information from hacked Sony documents, the budget was on pace to well exceed that, but there were also efforts to rein it in. We’ll assume the trends cancel themselves out so we’ll go with a nice round number with $300 million.

For the purposes of this post, we’ll assume a 30-week shooting schedule. Principal photography began on Dec. 8 and is supposed to run seven months. Actual total may run a week or two less than 30 weeks, but some filming was done before principal photography began. So, again, we’ll use a round number.

Cost per week, total: $10 million.

Cost per week, Rome shoot: $12 million (five weeks, $60 million, according to figures reported by Variety.com)

ESTIMATED COST OF NOTABLE JAMES BOND MOVIES (not adjusted for inflation)

Dr. No: $1 million

From Russia With Love: $2 million

Goldfinger: $3 million

You Only Live Twice: $9.5 million (Ken Adam’s volcano set alone cost more than Dr. No)

The Spy Who Loved Me: $14 million

Moonraker: $31 million to $34 million, depending on estimate (Initial plan was to keep it close to Spy’s budget but it was evident that wouldn’t hold)

Tomorrow Never Dies: $110 million (first to exceed $100 million)

Quantum of Solace: $230 million (first to exceed $200 million)

SPECTRE: $300 million (first to reach $300 million).

One week’s shooting on SPECTRE costs more than You Only Live Twice, which had the one set that cost more than Dr. No.

Put another way, each day’s shooting on SPECTRE costs more than Dr. No. At $10 million a week, if you shot seven days a week, equals $1.43 million daily.

ESTIMATED COST OF OTHER 2015 SPY MOVIES

Taken 3: $48 million

Kingsman: The Secret Service: $81 million

The Man From U.N.C.L.E.: $75 million

To be fair, none of this takes into account 50 years of inflation. At the same time, this exercise is also a reminder that studios don’t play with Monopoly money. Studios don’t get to spend, or receive, inflation-adjusted dollars.

SPECTRE shifts to Rome; Craig, Bellucci pose for pictures

Daniel Craig and Monica Bellucci, part of the cast of SPECTRE, the 24th James Bond movie, posed for pictures in Rome as the production gears up there.

Among the media outlets publishing pictures were YAHOO NEWS (Craig and Bellucci together), GETTY IMAGES (Bellucci alone, plus THIS ONE), I.IMGUR.COM (Craig and Belluci, different shot).

Also Zimbio put up A 16-PICTURE SLIDESHOW of Craig and Bellucci either together or separate.

VARIETY.COM also published a story the Rome filming. There are some mild spoilers, but those not wanting to know *anything* would be advised not to click on the link.

According to Vareity, the Rome shoot is scheduled for five weeks. Variety reported IN DECEMBER that SPECTRE would spend $60 million in Rome. The movie has a budget exceeding $300 million, making it one of the most expensive films of all time.

UPDATE: The official 007 Twitter feed later put out a photo:

Daniel Craig and Monica Bellucci in Rome overlooking the Forum #SPECTRE pic.twitter.com/aUJWhfEfTT

— James Bond (@007) February 18, 2015

SPECTRE may be one of most expensive movies ever made

SPECTRE, the 24th James Bond film made by Eon Productions, may be one of the most expensive movies ever made, not adjusted for inflation, based on one movie data base.

The CNN/MONEY WEBSITE reported Dec. 10 that hacked Sony Pictures documents indicate SPECTRE is on pace to cost more than $300 million. (Note: the CNN/Money story does contain plot spoilers.)

The story quoted an e-mail by a Metro-Goldwyn-Mayer executive as saying the budget “sits in the mid $300Ms,” while efforts were being made to get it back down to $250 million. Sony Pictures will release SPECTRE next year while Eon and MGM own the franchise.

THE NUMBERS WEBSITE, which compiles various movie financial data, includes a list of the 20 most expensive films it has information on. At $300 million, SPECTRE would tie Pirates of the Carribean: At World’s End for No. 2 at that list. Only Avatar, at $425 million, is higher.

Other films of note that are high on the list: The Dark Knight Rises, John Carter and 2013’s The Lone Ranger, all at $275 million, and three Hobbit movies at $250 million each.

Quantum of Solace, the 2008 Bond film, is No. 14 on the list at $230 million.

The website has this caveat: “Budget numbers for movies can be both difficult to find and unreliable. Studios often try to keep the information secret and will use accounting tricks to inflate or reduce announced budgets.”

Also, as mentioned before, the list doesn’t adjust for inflation.