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Avatar Costs How Much?

Published November 9, 2009 in Movie News
By Ryan Parsons | Image property of 20th Century Fox, NY Times
Avatar Avatar

Making an entirely new planet, fit with indigenous life and creatures, is effing pricey! It's interesting, however, that we'd now be discussing the price of Avatar, as I remember a similar article that came out about a month before the release of Titanic that was blown away by the film's budget of $200 million. The movie had the last laugh, as it went on to make $1.8 billion at the worldwide box office. Hence why 20th Century Fox is risking $500 million on Avatar. Yes, $500 million, but the risk is not entirely theirs.

Avatar Budget Talk

A great article has surfaced at NY Times that discusses how 20th Century Fox has distributed the financial risk of Avatar. If the film is close to the expectations people have, then I feel there is no need to worry. But, just in case...

Despite the estimated half-billion dollars spent on its production and marketing, “Avatar” may carry surprisingly little financial risk for Fox’s parent company, the News Corporation, even if it disappoints. That is because of shifting industry economics, reliance on outside investors and help from a network of allied companies and in-house business units.

While these small business units share some of the risk, they also pull from Fox's profits.

The News Corporation is carrying a much smaller share of “Avatar’s” production cost, as a pair of private equity partners — Dune Entertainment and Ingenious Media — pick up 60 percent of the budget, according to people who were briefed on the economics of the film but spoke on the condition of anonymity to avoid conflict with the studio or filmmakers.

Having seen at least the Avatar trailer in 3D I can openly say that the film is looking to blow us all away. The visuals are insane and the 3D is as close to perfection as you can get. So, remember to see this film in 3D and check out the rest of the financial report here.

Avatar opens to theaters on December 18th.

For the poster, trailers, stills and the latest updates, go to the Avatar Movie Page.

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Compiled By (Sources)
Ryan Parsons
Sources: Image property of 20th Century Fox, NY Times

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