The new movie from the Walt Disney stable, Avatar: The Way of Water, earned $134 million in the US and Canada at the weekend release. The results, however, were short of expectations from one of the most anticipated movies of 2022.
The movie was projected to earn between $145 million and $179 million, as per BoxofficePro. Meanwhile, on Saturday, Disney lowered its estimates from $150 million to $130 million.
COVID Impact on China Sales
Avatar: The Way of Water earned revenue of $301 million internationally, as per a statement issued by Disney Sunday. This includes $57 from sales in China, where renewed COVID fears may have limited the audience. Disney had projected $50 million to $100 from China market.
The numbers have put the movie in fifth place, along with Batman, released by Warner Bros. for the biggest domestic opening on the weekend of this year. The two openings were in May when Doctor Strange in the Multiverse of Madness generated $187 million. Black Panther: Wakanda Forever earned $181 million in November as per data from Comscore Inc. Data.
The results will be disappointing for theatre stocks such as IMax Corp. and AMC Entertainment holdings, who are still struggling to attract an audience after the COVID pandemic. Several exhibitors were expecting good openings from Avatar, with Adam Aron, AMC Entertainment’s CEO, saying that seeing the movie on the big screen would become a global phenomenon.
Production Cost Recovery – A Challenge
The movie’s production cost is more than $350 million, and it will be difficult for Disney to recover its investment. James Cameron, director of The Way of Water, said it has to be the third or fourth highest gross earning movie of all time to make a profit, suggesting that ticket sales should be more than $2 billion.
The results have raised concerns about the overall franchise’s future performance. Disney had shot two films simultaneously and plans to shoot five in total till 2028. The biggest release in the history of Disney is “The Way of Water,” which debuted on over 12,000 screens throughout Canada and the US and 40,000 internationally.
The three-plus hours of movie running time have limited the number of shows a Theatre can have in a day, resulting in an impact on optimum ticket sales. A very high 57% of viewers watched the movie in 3D. The high-ticket price has boosted revenue, but many viewers are waiting to get a good seat for 3D theatre before they buy.
The head of distribution at Disney, Tony Chambers, said that they have 3000+ screens in 3D out of the 12,000 screens, giving the audience options to see the movie in an immersive environment.
The first Avatar was the highest-gross-earning movie of all time at $2.92 billion. It was the most significant franchise to emerge after Disney purchased Fox entertainment assets for $71 billion in 2019.
The studios of the erstwhile Fox have produced many movies, including West Side Story remake and Amsterdam that fell short at the box office.
