Red One Only Made 35 Million (Against An Over 200 Million Budget) Opening Weekend. Why It’s Still A Win For Amazon

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As a long-time movie enthusiast who has seen more than a handful of holiday blockbusters, I can confidently say that Amazon’s gamble with “Red One” is proving to be a masterstroke. While it may have had a soft opening domestically, its international success and potential for further growth suggest that this film could very well become a modern holiday classic.

The action-comedy movie titled “Red One,” starring Dwayne Johnson and Chris Evans, didn’t exactly break box office records during its opening weekend in 2024. It had a relatively low domestic start, earning $35 million. Given its production budget of over $200 million, these figures might raise some eyebrows. However, the tale doesn’t end with its domestic earnings. So far, “Red One” has made $83 million worldwide, and there’s potential for more as it plays in theaters and eventually hits Amazon Prime Video. Despite doubts about profitability, Amazon still considers this film a success. Here’s why:

Amazon Is Using A Different Kind of Success Metric

As per Deadline’s report, the studio’s domestic opening of $35 million was less than expected, but “Red One” has performed better internationally. To be specific, its worldwide total from the first weekend is said to be approximately $83 million, according to Box Office Mojo. International audiences often enjoy holiday-themed blockbusters, and with more international expansion planned, these figures could potentially increase further.

Historically, popular Christmas films have had strong runs at the box office, particularly those starring celebrities like Johnson and Evans. However, the upcoming movie Red One has a challenging path to recoup its costs based on its theatrical performance alone. With a reported production budget exceeding $200 million and marketing expenses estimated to be around $100 million worldwide, it would require significant global earnings just to cover its expenses. This is a substantial risk for most studios, but for Amazon, box office revenue is just one aspect to consider.

Why Red One Is Still A Win for Amazon

Instead of relying on immediate box office earnings like conventional studios, Amazon apparently doesn’t require such returns from Red One. Originally designed for one of the top streaming platforms (Prime Video), it will be an exclusive offering, contributing to Amazon’s existing business strategy. The decision to release it in cinemas is a strategic shift aimed at generating buzz and giving the film a leg up before its streaming premiere. For the streaming service, box office earnings are essentially “extra income,” as industry experts describe it.

Theater premieres frequently function as promotional efforts for streaming services, boosting a film’s profile and preparing the groundwork for its continued life on digital platforms. According to an industry expert, this is comparable to:

Amazon is a place where there’s no stakes.

With its substantial resources and multiple income sources, the company can afford to take on costly projects in production, minimizing the financial perils that typically plague other studios.

The real worth of “Red One” for Amazon is its potential to boost Prime Video subscriptions. Featuring two major stars from Hollywood, it’s likely to become an annual tradition on viewers’ screens, joining classics such as “Elf” and “The Polar Express.” Furthermore, Amazon can generate additional revenue by offering ad-supported screenings and leveraging merchandise partnerships.

It’s well-known that critics haven’t been overly fond of the Christmas movie, Red One. However, despite the low Rotten Tomatoes rating of 33%, the film has managed to meet one of Amazon’s primary objectives: creating a favorable response from audiences. The film boasts an A CinemaScore and has ignited discussions online, with many appreciating its family-oriented theme and holiday ambiance. These reactions suggest it may strike a chord with streaming viewers, where ease of access and rewatchability are paramount.

The film additionally capitalizes on the increasing popularity of high-octane action movies set during holidays, a genre that has seen significant growth recently. Despite mixed reviews from critics, viewers seem to be quite fond of it. If Red One becomes popular on Prime Video, it could potentially become a modern holiday action classic and prove to be a substantial long-term success for Amazon.

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2024-11-19 19:37