Does this make sense to any of you?
If John Carter cost $350 million to make and market, but earned $53.2 million domestically and $130.8 million abroad in just ten days, how can Disney lose $200 million? By my math, it's only down $166 million at this point, and it will probably pull in another $50 or $60 million before the movie theaters shelve it. Then it will probably make another $50 or $60 million when it comes out on DVD in six months.
What am I missing?
March 19, 2012, 7:32 p.m. ET
Disney's $200 Million Charge
'John Carter' Proves a Huge Loss for Disney, Spurs New Focus on Cutting Costs
By ERICA ORDEN, wsj.com
Walt Disney Co. DIS %expects to lose $200 million on its science-fiction epic "John Carter," the company said on Monday, citing the costly movie's weak box-office performance.
As a result, Disney added, its movie studio is expected to report an operating loss of between $80 million and $120 million for its fiscal second quarter, ending March 31. Disney won't report its earnings for the quarter until May, and rarely offers such advance financial guidance.
The studio recorded an operating profit of $77 million during the same quarter last year—even though that period included another big-budget flop, "Mars Needs Moms."
"John Carter," which cost more than $250 million to make and an additional $100 million to market, has been a box-office bomb, particularly in the U.S., where its cumulative domestic earnings total $53.2 million during its first 10 days in theaters. The movie has fared somewhat better abroad, grossing $130.8 million outside the U.S. and Canada since its March 9 opening. But those results are disappointing for a film that was one of the studio's most expensive in years.
Full story: http://online.wsj.com/article/SB10001424052702304724404577291972883469132.html?mod=WSJ_hps_sections_management
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