With the US just re-opening and several major overseas markets still shuttered, nobody is making any money at the box office, right? Well, apparently they are. Unbelievably Godzilla Vs. Kong is about to turn a profit and Warner Bros. is the winner in the situation.
The monster vs. monster battle royale has ruled at the global box office for the second weekend in a row. It’s up at $358 million globally as of yesterday. This does not include any HBO Max subscriptions it may have helped ship and also overseas PVOD revenue. For instance, Godzilla Vs. Kong was available in the UK via Sky On Demand for £15.99.
Deadline is reporting that the way the deal was struck with Legendary for the HBO Max day-and-date release means all flows to Warner Bros. Legendary were paid off. The $120 million they spent on the production for Godzilla Vs. Kong was paid back by Warner Bros. effectively buying them out of the movie.
Warner Bros. was already on the hook for an additional $40 million in their contribution to the production costs, plus 100% of the marketing for the distribution. However, as markets were closed the marketing budget was tiny compared to a normal global blockbuster.
According to the Deadline report, once it has all shaken out in the wash and exhibitors are paid, Godzilla Vs. Kong has already earned more than $130 million in revenue direct to Warner Bros. with more to come, and HBO Max subscriptions and an expected $200 million in TV revenue to come on top of that.
Analysts are predicting Godzilla Vs. Kong will make Warner Bros. and AT&T tens of millions of dollars in profit even after all costs are deducted. Not bad going for a global pandemic with closed theatres.