You are correct SM, the merchandising will be the bread and butter of the Hulk movie. Hulk is capped at 5 million for the first movie. This includes DVD/video,ppv, t.v ect. There is no cap on the video games. But hey, the sky is the limit for H2. I have a feeling hulk toys will be huge, so will the video game. Pure profits.
Dow Jones Business News
'Hulk,' 'Daredevil' Add Muscle to Marvel's 2003 View
Monday March 3, 8:01 pm ET
By Dwight Oestricher
NEW YORK -- Although its profits on "The Hulk" film will be capped, Marvel Enterprises Inc. (NYSE:MVL - News) expects the Green Goliath will be a powerhouse when it comes to 2003 earnings.
Marvel President and Chief Executive Allen Lipson said during a conference call to discuss fourth-quarter earnings that the company renegotiated its "not very good deal," with Vivendi Universal's (V) Universal Pictures unit on "The Hulk" to a first-dollar gross deal so it can collect a percentage of the box- office sales.
However, Mr. Lipson said, that meant a cap on the box-office for Marvel from " The Hulk," but there's no such limits on merchandising revenue from "The Hulk" or any potential sequels. He added that the company was also able to renegotiate a more favorable deal with Fox Entertainment Group Inc. (NYSE:FOX - News) on the "X-Men" sequel, "X2," scheduled for release May 2, however it isn't for first-dollar gross on the box office......................
That brings us to X2. I am 90% sure Marvel has profit participation for X2.
What this basically means is this:
Marvel gets a percent of the take after deducting costs. The formula is Box Office total minus/less 50% to the movie theaters. Then subtract production and advertising cost from net revenue. Marvel receives 5% of this net revenue, only if the film makes money.
I am pretty sure of this. Now what was the budget for producing it and advertising? I do not know. Profit participation is not the best of deals for Marvel. I do believe this is the last movie to have this type of deal.
Spiderman 2, H2 have gross participation. The Punisher has equity participation, the best imo.
All I know is Marvel is a friggen cash cow with it's merchandising deals. $20 by year end. 2004 will be huge.
Lets see how X2 does. Hope for a huge opening weekend and next, because after that................the Matrix.
I will say it now.If X2 does well, there will be a X3. |
