Over RM200 million loss in ‘Solo’ film setback expected
LOS ANGELES: Lucasfilm’s stand- alone ‘Solo: A Star Wars Story’ is set to lose over US50 million ( RM200 million) in a stunning setback for the series of movies.
Its earnings are expected to top out in the US$ 400 million range.
Worldwide, the movie is badly underperforming and will become the first of the Star Wars movies made by Disney and Lucasfilm to lose money.
Wall Street analyst Barton Crockett says Solo will lose more than US$ 50 million. Industry financing sources, however, say that figure could come in at US$ 80 million or higher, although no one knows the exact terms of Disney’s deals for home entertainment and television, among other ancillary revenues.
Solo, directed by Ron Howard, isn’t likely to gross much more than US$ 400 million globally against a budget of at least US$ 250 million and a major multimillion- dollar marketing spend. The movie lost major altitude in its second weekend of play to finish last Sunday with a total of US$ 148.9 million in the US and a global total of US$ 264.2 million.
Until now, Disney and Lucasfilm appeared unstoppable. ‘Force Awakens’, benefiting mightily from pent-up demand, earned US$ 2.068 billion globally to rank as the number three title of all time, not adjusted for inflation. The stand- alone title ‘Rogue One: A Star Wars Story’ flew to US$ 1.056 billion, while ‘Star Wars: The Last Jedi’ grossed US$ 1.332 billion. Since expectations for any film in the Star Wars franchise are sizeable, no one expected Solo to fly so low.
“This marks a tough return to movie reality for a Disney that had in recent years enjoyed a can’t-miss mystique,” Crockett wrote in his note to investors. In his own note to investors, analyst Doug Creutz of Cowen & Co. pins the blame on a lacklustre marketing campaign rather than franchise fatigue.
Disney can withstand any loss, and isn’t expected to take a writedown for the Solo shortfall. This year alone, Disney and Marvel’s ‘ Black Panther’ and ‘Avengers: Infinity War’ have generated hundreds of millions of dollars in profit for the studio. ‘ Black Panther’ has grossed US$ 1.345 billion worldwide, including nearly US$ 700 million in the US.
‘ Infinity War’ has grossed US$ 1.966 billion globally, and is poised to become the first summer film in history to cross US$ 2 billion.