GhaleonEB said:
It is a valid point - but not a salient one in predicting Avatar's total haul, since how much it's making is ultimately what is being projected.
The approach I've taken is to look at what the likely trends are for Avatar's current trajectory - take what we have now, and project forward, rather than look to other movies in the past.
One scenario: let's say Wednesday and Thursday box office hold steady at Tuesday's number. They'll probably average out to about that, give or take a couple million.
That would mean in the first seven days (Friday-Thursday) Avatar brought in $137m. In its second seven, the take would be $149m.
Now we've gotta guess what happens from there. Let's say Avatar starts dropping 25% per week here on out. In seven weeks - five weeks from now - it tops Titanic, at $630m, and is still making $35m the week it does. Drop that to a 30% week over week drops from here on out and it happens in nine weeks total - in late February.
So, it's going to have to drop at something like 40% per week, starting with this weekend, to get on a trajectory NOT to hit Titanic's haul in the next two months. And a 40% drop is a NORMAL drop for a blockbuster like this after the first couple of weeks. And Avatar to date is not behaving normally.
See what I'm saying?
Crap, I just convinced myself Avatar has a much better chance than I thought. :lol
Here's the problem (and it
is a problem): supposing Titanic is around $350 million after the weekend (which it should be, give or take a few million and given a $60 million weekend, which is about what I would expect), the weekdays are going to drop
dramatically. The days after Christmas act like mini-holidays, historically, while after January 1st, they start going back to normal weekdays. The weekends, too, usually suffer, since Sundays don't act like holiday Sundays (which act more like Saturdays thanks to increased evening traffic). You should also keep in mind that Christmas Day is THE biggest moviegoing day of the year. This year the box office is exceptionally lucky that both Christmas and New Year's Day (another big moviegoing day) both fall on a Friday, which hasn't happened since '98 (who'da thought), so some of the effects should be muffled this weekend, but that just means that they will be spread to the weekend after instead.
Now, after next week I think Avatar might very well have 25%ish drops for awhile, at least on weekends, considering how good its word of mouth is and the limited 3D venues (and all the other factors I mentioned before). But that first drop--especially when it comes to the weekdays--matters a LOT. To make that somewhat more concrete, in the scenario you outlined, assuming around 25% weekly drops WITHOUT factoring in the big weekday drops would give Avatar around $14 million weekdays Monday through Thursday next week (the week after New Year's Eve weekend), and $11 million weekdays the week after that--which is pretty much impossible when you consider that the holiday traffic is mostly gone, with people either at work or school for most of the day. In fact, not only would you be looking at 28 or more consecutive days over ten million, you wouldn't even get below five million dollars a day until the seventh week. There just aren't enough people in theaters for the kind of run you're imagining here.
Another issue--and this is a deeper one--is the limited number of screens, 3D or otherwise. While Avatar's IMAX numbers are pretty much safe from other incursions for a long time, which will help soften the drop, as the year progresses even the biggest blockbusters start losing screens to other movies. January is pretty barren, which is why in the short term this effect can be mostly ignored (Book of Eli may be wonderful but it's not much of a threat to Avatar). As more movies start coming out, however, theaters will start to replace Avatar's showings. 2D theaters will be affected more heavily and earlier, since they don't generate as much of a premium, and theaters will obviously want to keep making bank off Avatar as long as possible, but eventually the per-theater average will be low enough that they would be making more money by switching them to other movies. This especially hurts with the 3D screens, since you're losing the premium and (in Avatar's case) a lot of the reason people have for coming. Unfortunately, since 3D screens are limited, any new 3D movie that comes out will steal some away, and even if they're total bombs by the time the theaters acknowledge it another movie's come to take their place. It is important to realize that this has nothing to do with audience perception or the quality of the movies, or even their grosses--it's simply a matter of limited screens.
Seven or eight weeks from now, when in your model Avatar is supposed to be passing Titanic, it won't have nearly as many screens, especially not 3D ones. It will be inaccessible for some people and pointless for others, and the infrastructure really won't be there for it to be making the nearly $5 million a weekday your model says it should. This is what happened to Up (which was on pace for over $300 million)--it lost 3D theaters too quickly and, in the end, couldn't make it. At some point, as the pace of theater loss slows to a crawl, this will become less of an issue--this is one reason many movies, even frontloaded ones like Twilight and box office disappointments like Terminator Salvation, show "late legs." When Titanic was released--and the longer back you look, the truer this becomes--there were a lot less movies released per year, and movies were given much more time to build their grosses and stretch their legs. In Titanic's case, it was able to take advantage of an almost complete absence of direct competition for months; in Avatar's, two huge movies were released literally the week afterwards, one by its own studio! That sort of thing was pretty much unheard of in leggier times.
Now, let's move on to your other scenario. As you said, 40% drops are normal, or at least not overwhelmingly startling, for a (well-received) blockbuster after its first few weeks. But for the reasons I outlined above (and more) Avatar's first few weeks are sort of a special case, so it might be more instructive to ignore the first $290 million or so and think of Avatar as opening this weekend to around a $60 million haul and playing like a normal blockbuster. We can make it a fairly leggy one, since it's Avatar, which by today's standards means (sadly) a 3.5 multiplier or above. Now let's see what various scenarios would mean and how they would play out:
- 3.0 multiplier - final gross of $290 + $60 * 3, or approximately $$470 million. This is a very, very high box office take--blows what most people expected of the movie before it came out out of the water--but I think it can safely be considered a conservative estimate for a leggy movie like Avatar. Good movie comparisons: Indiana Jones 4, Terminator Salvation, Wanted, Pirates of the Caribbean: Dead Man's Chest, 300... I think you get the picture. That this is a lower estimate is already astounding, and I want to make it clear that I do think its box office performance is stunning. But it's a long way from here to Titanic.
- 3.5 multiplier - final gross of $290 + $60 * 3.5, or approximately $500 million. It would be just the third movie ever to get here, and the way it's tracking I think it will probably get here. This is around Iron Man, Dark Knight, Star Trek, Transformers 2 (yeah, I know), Spider Man 1, and bad animated movie legs.
- 4.0 multiplier - final gross of $290 + $60 * 4, or approximately $530 million. This is around average Pixar legs (Pixar movies are generally considered to have damn good legs and consistently open around $60 million). Other comparisons: good animated movies, Harry Potter, decent movies aimed at kids (kids see movies with their parents, and therefore at their parents' convenience and aren't as obsessed with coming out opening day as older crowds or sequel/property-driven audiences). For an event film to have these sorts of "normal" legs is extremely rare these days (and yes, I know Avatar's not normal, but I think we took care of that when we pretended its third weekend was its opening weekend)--Casino Royale, Superman Returns, Batman Begins, and The Bourne Ultimatum are a few from the last few years. This is also, gross-wise, Dark Knight territory. I think it has a fairly good chance of getting here and (perhaps) surpassing the Dark Knight given how leggy it's been so far, but this is really the highest estimate I would feel comfortable giving to an investor. Still falls pretty far short of Titanic.
- 4.5 multiplier - final gross of $290 + $60 * 4.5, or approximately $560 million. Transformers 1 was around here, as was the first Chronicles of Narnia, The Devil Wears Prada, and other random films. It's hard to find high-grossing movies anywhere near this multiplier, at least in the recent past, but I personally think Avatar has a chance of getting here or close to it, because I think it is a very special film. This is probably my personal upper ceiling.
- 5.0 multiplier - final gross of $290 + $60 * 5, or approximately $590 million. These are some seriously good legs, pretty much unheard of for a modern blockbuster (see my previous chart), with some REALLY soft drops. Still, you could probably make a case for this being feasible, though I would wait on a few more weeks of data for that. For a better idea of how ridiculously leggy this is, consider the following list of comparable movies: Borat, The Departed, Knocked Up, 40 Year Old Virgin, Crash... event films really just DON'T get here these days. And we're still not at Titanic.
- 5.17 multiplier - final gross of around $600 million, or Titanic territory. Like I said, I don't think this is very likely at all in today's theater environment--I wouldn't exactly give it a "good" chance. Almost perfect comparison (from a multiplier perspective): Return of the King. Except WITH the Christmas gross we excluded from Avatar included.
- 6.0 multiplier - final gross of $290 + $60 * 6, or approximately $650 million. I think it's safe to say that this isn't happening, so consider this an official upper bound. The Matrix is the most recent comparable movie to get here, and even then it did so off a pretty small opening weekend, ten years ago.
So basically... I don't think Titanic is happening. Then again, I thought if there was one person who wouldn't like Avatar it was my sister, but apparently she really enjoyed it, so maybe we really can throw all precedent out the window.